Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian CPI for the fourth quarter increased 0.6% quarterly and 4.1% annualized. Economists predicted an expansion of 0.8% quarterly and of 4.3% annualized. Forex traders can compare this to the Australian CPI for the third quarter, which rose 1.2% quarterly and 5.4% annualized. The RBA Trimmed Mean CPI for the fourth quarter increased 0.8% quarterly and 4.2% annualized. Economists predicted a rise of 0.9% quarterly and of 4.3% annualized. Forex traders can compare this to the RBA Trimmed Mean CPI for the third quarter, which expanded 1.2% quarterly and 5.2% annualized. The RBA Weighted Median CPI for the fourth quarter rose 0.9% quarterly and 4.4% annualized. Economists predicted an increase of 1.0% quarterly and of 4.5% annualized. Forex traders can compare this to the RBA Weighted Median CPI for the third quarter, which expanded 1.3% quarterly and 5.2% annualized.
The Australian Monthly CPI Indicator for December increased by 3.4% annualized. Economists predicted a rise of 3.7%. Forex Traders can compare this to the Australian Monthly CPI Indicator for November, which surged 4.3% annualized.
Australian Private Sector Credit for December increased by 0.4% monthly, and Housing Credit by 0.4% monthly. Forex traders can compare this to Australian Private Sector Credit for November, which rose by 0.4% monthly, and Housing Credit by 0.4% monthly.
The New Zealand ANZ Activity Outlook for January rose by 25.6%, and ANZ Business Confidence came in at 36.6. Forex traders can compare this to the New Zealand ANZ Activity Outlook for December, which rose by 29.3%, and to ANZ Business Confidence, reported at 33.3.
The Chinese Non-Manufacturing PMI for January came in at 50.7, and the Chinese Manufacturing PMI at 49.2. Economists predicted a figure of 50.6 and 49.2. Forex traders can compare this to the Chinese Non-Manufacturing PMI for July, reported at 50.4, and the Chinese Manufacturing PMI, at 49.0. The Chinese Composite PMI for August came in at 50.9. Forex traders can compare this to the Chinese Composite PMI for July, reported at 50.3.
The forecast for the AUD/NZD remains bullish, with price action stable at support. The Ichimoku Kinko Hyo cloud adds to upside momentum with the Senkou Span A and the Senkou Span B moving higher. Adding to the bullishness is the ascending Tenkan-sen, but the Kijun-sen is flat. Traders should also monitor the CCI following its double breakdown from extreme oversold territory and below zero. This technical indicator may challenge extreme oversold conditions but should reverse, which could trigger a new breakout attempt. Can bulls regain control over the AUD/NZD and drive 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 1.0760 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0740
- 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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