Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Terms of Trade Index for the third quarter contracted by 0.6% quarterly, and Export Volume plunged by 5.5% quarterly. Forex traders can compare this to the New Zealand Terms of Trade Index for the second quarter, which increased by 0.3% quarterly and Volume by 6.8%. Export prices for the third quarter dropped 1.4% quarterly and Import Prices by 0.8%. Forex traders can compare this to Export Prices for the second quarter, which contracted by 0.6%, and Import Prices by 1.0%.
Australian TD Securities Inflation for November increased by 0.3% monthly. Forex traders can compare this to Australian TD Securities Inflation for October, which decreased 0.1% monthly.
Australian ANZ Job Advertisements for November plunged 4.6% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for October, which dropped 3.4% monthly.
Australian Business Inventories for the third quarter rose by 1.2% quarterly, and Australian Company Gross Operating Profits dropped by 1.3% quarterly. Economists predicted a contraction of 0.6% and 0.3%. Forex traders can compare this to Australian Inventories for the second quarter, which decreased 1.3% quarterly, and Australian Company Operating Profits, which plunged 12.1% quarterly. Company Pre-Tax Profits for the third quarter increased 1.6% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the second quarter, which collapsed 14.5% quarterly.
Australian Home Loans for October increased by 5.6% monthly, and Investment Lending for Homes expanded by 5.0% monthly. Forex traders can compare this to Australian Home Loans for September, which contracted by 0.1% monthly, and Investment Lending for Homes, which rose by 2.0% monthly.
Australian Final Retail Sales for October decreased by 0.2% monthly. Economists predicted a contraction of 0.2% monthly. Forex traders can compare this to Australian Retail Sales for September, which increased 0.9% monthly.
The forecast for the AUD/NZD turned cautiously bullish after this currency pair corrected into its horizontal support area and stabilized. Volatility could increase after the Kijun-sen and the Tenkan-sen flatlined, while the Ichimoku Kinko Hyo Cloud shows a bullish bias, led by the ascending Senkou Span A with a flat Senkou Span B. Traders should also monitor the CCI after setting a lower low in extreme oversold territory before moving higher. A breakout by this technical indicator above -100 could trigger a reversal rally. Can bulls regain control over the AUD/NZD and push price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/NZD remain inside the or breakout above the 1.0725 to 1.0770 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0750
- Take Profit Zone: 1.0900 – 1.0945
- Stop Loss Level: 1.0695
Should price action for the AUD/NZD breakdown below 1.0725, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level:Short Position @ 1.0695
- Take Profit Zone: 1.0575 – 1.0620
- Stop Loss Level: 1.0725
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