Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian ANZ Roy Morgan Consumer Confidence Index for June came in at 83.0. Forex traders can compare this to the Australian ANZ Roy Morgan Consumer Confidence Index for May, reported at 84.9.
Australian Consumer Inflation Expectations for June increased by 4.4% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for May, which expanded by 4.1% annualized.
The New Zealand NBNZ Own Activity for June rose by 12.2%, and ANZ Business Confidence came in at 6.1. Forex traders can compare this to the New Zealand NBNZ Own Activity for May, which increased by 11.8%, and to ANZ Business Confidence, reported at 11.2.
New Zealand's M3 Money Supply for May came in at NZ$410.2B. Forex traders can compare this to New Zealand M3 Money Supply for April, reported at NZ$412.4B.
Chinese Industrial Profits for May increased by 3.8% year-to-date, ending in May. Forex traders can compare this to Chinese Industrial Profits for April, which rose 4.3% year-to-date, ending in April.
The Australian Dollar may also move after a speech by Reserve Bank of Australia Deputy Governor Andrew Hauser delivers a speech, especially after consumer inflation expectations continue to increase.
The forecast for the AUD/NZD turned cautiously bearish after this currency pair rallied from its horizontal support area into its horizontal resistance area over the past nine trading sessions. Short-term volatility could increase following the bullish crossover between the ascending Tenkan-sen above the upward-drifting Kijun-sen, countered by the descending Ichimoku Kinko Hyo Cloud. The bearish crossover of the descending Senkou Span A below the flat Senkou Span B applies downside pressure on price action. Traders should also monitor the CCI in extreme overbought territory, as a negative divergence has begun to form. A breakdown below 100 could trigger the next sell-off. Can bears regain control over the AUD/NZD and force this currency pair back into its horizontal support 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 breakdown below the 1.0925 to 1.0965 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0945
- Take Profit Zone: 1.0730 – 1.0770
- Stop Loss Level: 1.1000
Should price action for the AUD/NZD break out above 1.0965, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1000
- Take Profit Zone: 1.1075 – 1.1100
- Stop Loss Level: 1.0965
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