Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Terms of Trade Index for the first quarter rose by 5.1% quarterly, and Export Volume rose by 6.3% quarterly. Forex traders can compare this to the New Zealand Terms of Trade Index for the fourth quarter, which plunged 7.8% quarterly, and Export Volume, which increased 2.6%. Export prices for the first quarter decreased by 0.3% quarterly, and Import Prices dropped by 5.1%. Forex traders can compare this to Export Prices for the fourth quarter, which contracted by 4.2%, and Import Prices, which rose by 3.8%.
The Australian AiG Construction Index for May came in at -68.1. Forex traders can compare this to the Australian AiG Construction Index for April, reported at -25.6. The AiG Manufacturing Index for May was at -31.1, and the AiG Industry Index was at -40.3. Forex traders can compare this to the AiG Manufacturing Index for April, reported at -13.9, and the AiG Industry Index at -8.9.
The Australian GDP for the first quarter expanded 0.1% quarterly and 1.1% annualized. Economists predicted an increase of 0.2% and 1.2% annualized. Forex traders can compare this to the Australian GDP for the fourth quarter, which rose 0.3% quarterly and 1.6% annualized. Capital Expenditure for the first quarter decreased by 0.9% quarterly, the Chain Price Index rose by 0.8% quarterly, and Final Consumption expanded by 0.6% quarterly. Economists predicted a drop of 5.6% and a rise of 4.3% and 1.4%. Forex traders can compare this to Capital Expenditure for the fourth quarter, which contracted by 0.2% quarterly, the Chain Price Index, which rose by 2.0% quarterly, and Final Consumption, which expanded by 0.5% quarterly.
The Hong Kong Manufacturing PMI for May came in at 49.2. Forex traders can compare this to the Hong Kong Manufacturing PMI for April, reported at 50.6.
The Chinese Caixin Services PMI for May came in at 54.0, and the Chinese Caixin Composite PMI was at 54.1. Forex traders can compare this to the Chinese Caixin Composite PMI for April, reported at 52.5, and the Chinese Caixin Composite PMI at 52.8.
The forecast for the AUD/NZD turned bullish after this currency pair retreated into its horizontal support area. Short-term volatility could increase with the Tenkan-sen and the Kijun-sen moving lower but losing momentum following a bearish crossover. The Ichimoku Kinko Hyo Cloud continues to narrow, with the Senkou Span A moving lower and the Senkou Span B moving higher. Traders should also monitor the CCI after forming a positive divergence in extreme oversold territory. A breakout above -100 could trigger the next leg higher. 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 1.0750 to 1.0785 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0770
- Take Profit Zone: 1.0940 – 1.0990
- Stop Loss Level: 1.0720
Should price action for the AUD/NZD break down below 1.0750, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0720
- Take Profit Zone: 1.0630 – 1.0655
- Stop Loss Level: 1.0750
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