Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for June was reported at 55.5. Forex traders can compare this to the Australian AiG Construction Index for May, reported at 58.3. The Final Australian Markit Services PMI for June was reported at 56.8, and the Final Australian Markit Composite PMI at 56.7. Forex traders can compare this to the Australian Markit Services PMI for May, reported at 58.0, and to the Final Australian Markit Composite PMI, reported at 58.0. The Australian Melbourne Institute Inflation Index for June increased by 0.4% monthly. Forex traders can compare this to the Australian Melbourne Institute Inflation Index for May, which decreased by 0.2% monthly.
Australian ANZ Job Advertisements for June increased by 3.0% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for May, which increased by 6.8% monthly. Australian Building Approvals for May decreased 7.1% monthly, and Private House Approvals decreased 10.3% annualized. Forex traders can compare this to Australian Building Approvals for April, which decreased 5.7% monthly, and to Private House Approvals, which increased 5.9% annualized.
Australian Retail Sales for May increased by 0.4% monthly. Economists predicted an increase of 0.1% monthly. Forex traders can compare this to Australian Retail Sales for April, which increased by 0.1% monthly. The New Zealand ANZ Commodity Price Index for June increase by 0.8% monthly. Forex traders can compare this to the New Zealand ANZ Commodity Price Index for May, which increased by 2.1% monthly.
The forecast for the AUD/NZD turned bullish after this currency pair corrected into the Senkou Span A of its Ichimoku Kinko Hyo Cloud, which started to adopt a bullish tone. The Kijun-sen started to ascend, but the Tenkan-sen continues to move lower, suggesting short-term volatility ahead before the next leg higher can develop. While the CCI moved into extreme oversold territory, more short-term downside is possible, and traders should wait for a breakout before buying the AUD/NZD. Can bulls rally and pressure price action into its next 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 1.0695 to 1.0725 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0710
- Take Profit Zone: 1.0855 – 1.0875
- Stop Loss Level: 1.0675
Should price action for the AUD/NZD breakdown below 1.0695, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0675
- Take Profit Zone: 1.0600 – 1.0630
- Stop Loss Level: 1.0695
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