Source: PaxForex Premium Analytics Portal, Fundamental Insight

New Zealand NZIER Business Confidence for the fourth quarter was reported at -6%. Forex traders can compare this to New Zealand NZIER Business Confidence for the third quarter, reported at -40%. New Zealand NZIER QSBO Capacity Utilization for the fourth quarter was reported at 95.1%. Forex traders can compare this to New Zealand NZIER QSBO Capacity Utilization for the third quarter, reported at 92.6%.

New Zealand Electronic Retail Card Spending for December increased by 19.2% monthly and by 3.5% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for November, which increased by 0.1% monthly and by 1.4% annualized. Australian HIA New Home Sales for December increased by 32.5% monthly. Forex traders can compare this to Australian HIA New Home Sales for November, which increased by 15.2% monthly.

The forecast for the AUD/NZD turned bearish after this currency pair exhausted its upside. The soured relationship between Australia and China will present a drag on the Australian economy, while China seeks to strengthen economic ties with New Zealand. The Kijun-sen and Tenkan-sen keep moving higher, but the Tenkan-sen is losing momentum. The CCI is moving close to a breakdown from extreme overbought conditions, which could take price action into its Ichimoku Kinko Hyo Cloud. Can bears force the AUD/NZD into its horizontal support 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 breakdown below the 1.0785 to 1.0815 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.0800
• Take Profit Zone: 1.0590 – 1.0630
• Stop Loss Level: 1.0860

Should price action for the AUD/NZD breakout above 1.0815 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.0860
• Take Profit Zone: 1.0935 – 1.0960
• Stop Loss Level: 1.0815

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