Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand PPI Input for the first quarter increased by 2.1% quarterly and the New Zealand PPI Output increased by 1.2% quarterly. Forex traders can compare this to the New Zealand PPI Input for the fourth quarter, which increased by 0.1% quarterly, and to the New Zealand PPI Output, which increased by 0.5% quarterly.

Australian Westpac Consumer Confidence for May decreased by 4.8% monthly to 113.1. Forex traders can compare this to Australian Westpac Consumer Confidence for April, which increased by 6.2% monthly to 118.8. The Australian Wage Price Index for the first quarter increased by 0.6% quarterly and by 1.5% annualized. Economists predicted an increase of 0.5% quarterly and of 1.4% annualized. Forex traders can compare this to the Australian Wage Price Index for the fourth quarter, which increased by 0.6% quarterly and by 1.4% annualized. 

The forecast for the AUD/NZD remains bearish, with the descending Ichimoku Kinko Hyo Cloud increasing downside pressure. After the Senkou Span A crossed below the Senkou Span B, traders should prepare for more selling over the next few days. The Kijun-sen is decelerating and on course to cross below the flat Tenkan-sen, which will inject more bearish momentum into this currency pair. The CCI bounced higher after reaching extreme oversold territory but is expected to reverse to the downside. Can bears keep the sell-off in the AUD/NZD intact until price action reaches its next 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 1.0735 to 1.0805 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.0770
• Take Profit Zone: 1.0415 – 1.0460
• Stop Loss Level: 1.0845

Should price action for the AUD/NZD breakout above 1.0805, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.0845
• Take Profit Zone: 1.0900 – 1.0945
• Stop Loss Level: 1.0805

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.