Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for June was reported at NZ$426M monthly and at -NZ$1,200M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for May, reported at NZ$1,286M monthly and at -NZ$1,290M 12-month year-to-date. Exports for June were reported at NZ$5.07B and Imports at NZ$4.64B. Forex traders can compare this to Exports for May, reported at NZ$5.40B and to Imports, reported at NZ$4.11B.
The Preliminary Australian Manufacturing PMI for July was reported at 53.4. Forex traders can compare this to the Australian CBA Manufacturing PMI for June, reported at 49.8. The Preliminary Australian CBA Services PMI for July was reported at 58.5. Forex traders can compare this to the Australian CBA Services PMI for June, reported at 53.2. The Preliminary Australian CBA Composite PMI for July was reported at 57.9. Forex traders can compare this to the Australian CBA Composite PMI for June, reported at 52.6.
The forecast for the AUD/NZD turned bearish as tensions between the US and China, now presumably at the front of a new cold war, are escalating. Australia, dependent on China, has already soured relations over the Covid-19 pandemic that broke out in Wuhan and may be caught in the crossfire, forced to pick one side. Price action moved into the Ichimoku Kinko Hyo Cloud, from where more selling can drive this currency pair into its next horizontal support area. Will bears force more downside before the weekend? 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 1.0660 to 1.0710 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0685
- Take Profit Zone: 1.0565 – 1.0590
- Stop Loss Level: 1.0725
Should price action for the AUD/NZD breakout above 1.0710 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0725
- Take Profit Zone: 1.0770 – 1.0800
- Stop Loss Level: 1.0710
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