Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand GDP for the fourth quarter decreased by 0.6% quarterly and increased by 2.2% annualized. Economists predicted a drop of 0.2% and a rise of 3.3%. Forex traders can compare this to the New Zealand GDP for the third quarter, which expanded by 1.7% quarterly and 6.4% annualized. The New Zealand GDP Annual Average for the fourth quarter rose by 2.4% quarterly, and GDP Expenditure contracted by 0.8% quarterly. Economists predicted an increase of 2.7% and a decrease of 0.2%. Forex traders can compare this to the New Zealand GDP Annual Average for the third quarter, which increased by 2.7% quarterly, and GDP Expenditure by 2.3% quarterly.
New Zealand RBNZ Offshore Holdings for February came in at 56.0%. Forex traders can compare this to New Zealand RBNZ Offshore Holdings for January, reported at 57.1%.
Australian Consumer Inflation Expectations for March increased by 5.0% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for February, which rose 5.1% annualized.
The Australian Employment Change for February came in at 64.6K, and the Unemployment Rate at 3.5%. Economists predicted a figure of 48.5K and 3.6%. Forex traders can compare this to the Australian Employment Change for January, reported at -11.0K, and the Unemployment Rate reported at 3.7%. 74.9K Full-Time Positions were created, and 10.3K Part-Time Positions were lost in February. Forex traders can compare this to the loss of 42.4K Full-Time Positions and the creation of 31.4K Part-Time Positions reported in January. The Labor Force Participation Rate for February came in at 66.6%. Economists predicted a reading of 66.6%. Forex traders can compare this to the Labor Force Participation Rate for January, reported at 66.5%.
The Chinese House Price Index for February decreased by 1.2%. Forex traders can compare this to the Chinese House Price Index for January, which contracted 1.5%.
The forecast for the AUD/NZD turned cautiously bullish after this currency pair recovered from a brief dip below its ascending but narrowing Ichimoku Kinko Hyo Cloud. Volatility may increase as bulls and bears fight for directional control above a horizontal support area. The flat Kijun-sen and Tenlan-sen confirm the absence of short-term upside momentum. Traders should monitor the CCI after it has formed a positive divergence in extreme oversold territory, followed by a breakout. A push above zero should tip the balance in favor of the bulls. 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 1.0800 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0770
- Take Profit Zone: 1.0950 – 1.1010
- Stop Loss Level: 1.0715
Should price action for the AUD/NZD breakdown below 1.0750, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0715
- Take Profit Zone: 1.0620– 1.0670
- Stop Loss Level: 1.0750
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