Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Global Dairy Price Index for August increased by 0.5%. Forex traders can compare this to the New Zealand Global Dairy Price Index for July, which rose 0.4%.
The New Zealand Unemployment Rate for the second quarter was at 4.6%. Economists predicted an Unemployment Rate of 4.7%. Forex traders can compare this to the unemployment rate for the first quarter, which was reported at 4.4%. The Employment Change for the second quarter rose by 0.4%. Economists predicted a decrease of 0.2%. Forex traders can compare this to the Employment Change for the first quarter, which contracted by 0.2% quarterly. The Participation Rate for the second quarter was 71.7%. Economists predicted a Participation Rate of 71.3%. Forex traders can compare this to the participation rate for the second first, which was reported at 71.6%. The Labor Cost Index for the second quarter increased 0.9% quarterly and 3.6% annualized. Economists predicted a rise of 0.8% and 3.5%. Forex traders can compare this to the Labor Cost Index for the first quarter, which expanded 0.8% quarterly and 3.8% annualized.
The Australian AiG Construction Index for July came in at -23.2. Forex traders can compare this to the Australian AiG Construction Index for June, reported at -23.2. The AiG Manufacturing Index for July came in at -19.5, and the AiG Industry Index at -20.7. Forex traders can compare this to the AiG Manufacturing Index for June, reported at -26.5, and the AiG Industry Index at -25.6.
The Chinese Trade Balance for July came in at $84.65B. Economists predicted a figure of $97.50B. Forex traders can compare this to the Chinese Trade Balance for June, reported at $99.05B. Exports for July surged by 7.0% annualized and Imports by 7.2% annualized. Economists predicted an increase of 9.7% and 3.5%. Forex traders can compare this to Exports for June, which rose by 8.6% annualized, and Imports, which decreased by 2.3% annualized.
The forecast for the AUD/NZD turned cautiously bullish after this currency pair retreated into its horizontal support area. The Tenkan-sen, the Kijun-sen, as well as the Senkou Span A and Senkou Span B of the Ichimoku Kinko Hyo Cloud, are flat, suggesting a stand-off between bulls and bears and a risk of more short-term volatility. Traders should monitor the CCI in extreme oversold territory, as this technical indicator nears a breakout, which can spark the next advance. 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 1.0875 to 1.0900 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0890
- Take Profit Zone: 1.1030 – 1.1070
- Stop Loss Level: 1.0840
Should price action for the AUD/NZD break down below 1.0875, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0840
- Take Profit Zone: 1.0760 – 1.0810
- Stop Loss Level: 1.0875
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