Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Performance of Services Index for April came in at 47.1, and the New Zealand Performance of Composite Index was at 47.6. Forex traders can compare this to the New Zealand Performance of Services Index for March, reported at 47.2, and the New Zealand Performance of Composite Index at 46.6.
New Zealand Food Prices for April rose by 0.8% monthly. Forex traders can compare this to New Zealand Food Prices for March, which increased by 0.7% monthly.
Australian NAB Business Conditions for April came in at 7, and Australian NAB Business Confidence at 1. Forex traders can compare this to NAB Business Conditions for March, reported at 9, and Australian NAB Business Confidence at 1.
Australian Consumer Inflation Expectations for the second quarter was 2.3% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for the first quarter, which stood at 2.5% annualized.
Traders will start the new trading week with a light economic calendar, which could carry some of last week’s bullishness into the start of the week before upside momentum peters out. Market participants have pushed financial markets higher following a three-week sell-off based on hopes of one weaker-than-expected US NFP report, which opened the door for a bull trap. The Australian Dollar could resume its moderate correction amid a lack of catalyst to spark a reversal.
The forecast for the AUD/NZD turned cautiously bearish in the short term after price action lost bullish momentum at its horizontal support area and close to the psychological resistance level of 1.1000. Price action trades above its flat Kijun-sen but below its flat Tenkan-sen. The Ichimoku Kinko Hyo Cloud shows signs of flattening with the Senkou Span A and the Senkou Span B flatlining. Traders should also monitor the CCI after it recorded a lower high in extreme overbought territory. A double breakdown, below 100 and 0, boosted bearish pressures. This technical indicator has plenty of downside potential to lead price action lower. Can bears strengthen control over the AUD/NZD and force price action 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 1.0940 to 1.1000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0975
- Take Profit Zone: 1.0760 – 1.0810
- Stop Loss Level: 1.1030
Should price action for the AUD/NZD breakout above 1.1000, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1030
- Take Profit Zone: 1.1075 – 1.1100
- Stop Loss Level: 1.1000
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