Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Activity Outlook for May decreased by 4.7%, and ANZ Business Confidence came in at -55.6. Forex traders can compare this to the New Zealand ANZ Activity Outlook for April, which rose 8.0%, and ANZ Business Confidence reported at -42.0.
Australian Building Approvals for April decreased 2.4% monthly, and Private House Approvals increased 0.5% monthly. Forex traders can compare this to Australian Building Approvals for March, which plunged 19.2% monthly, and Private House Approvals, which dropped 3.0% monthly.
Australian Private Sector Credit for April increased 0.8% monthly and Housing Credit by 0.6% monthly. Forex traders can compare this to Australian Private Sector Credit for March, which rose 0.6% monthly, and Housing Credit by 0.6% monthly.
The Australian Current Account Balance for the first quarter came in at A$7.5B. Economists predicted a figure of A$13.4B. Forex traders can compare this to the Australian Current Account Balance for the fourth quarter, reported at A$13.2B. Australian Net Exports of GDP for the first quarter decreased 1.7% quarterly. Economists predicted a contraction of 1.4%. Forex traders can compare this to Australian Net Exports of GDP for the fourth quarter, which dropped 0.2% quarterly.
Australian Business Inventories for the first quarter increased by 3.2% quarterly and Australian Company Gross Operating Profits by 10.2% quarterly. Economists predicted a rise of 1.0% and 4.0%. Forex traders can compare this to Australian Inventories for the fourth quarter, which rose 1.5% quarterly, and to Australian Company Operating Profits by 4.6% quarterly. Company Pre-Tax Profits for the first quarter expanded 2.2% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the fourth quarter, which increased 7.6% quarterly.
The Chinese Non-Manufacturing PMI for May came in at 47.8, and the Chinese Manufacturing PMI at 49.6. Forex traders can compare this to the Chinese Non-Manufacturing PMI for April, reported at 41.9, and the Chinese Manufacturing PMI reported at 47.4. The Chinese Composite PMI for May came in at 48.4. Forex traders can compare this to the Chinese Composite PMI for April, reported at 42.7.
The forecast for the AUD/NZD turned bearish as upside momentum is fading, visible by its descending Tenkan-sen. A breakdown below its flat Kijun-sen can cause renewed selling pressure in this currency pair. The Ichimoku Kinko Hyo Cloud flatlined, with the Senkou Span A showing signs of bearishness. Traders should monitor the CCI after its breakout from extreme oversold territory. It remains in negative conditions but is likely to drift marginally to the upside before reaching a lower high. Can bears maintain control over the AUD/NZD and pressure 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 1.0955 to 1.1025 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0985
- Take Profit Zone: 1.0720 – 1.0770
- Stop Loss Level: 1.1080
Should price action for the AUD/NZD breakout above 1.1025, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1080
- Take Profit Zone: 1.1175– 1.1225
- Stop Loss Level: 1.1025
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