Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand Trade Balance for October was reported at -NZ$1,286M monthly and at -NZ$4,920M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for September, reported at -NZ$2,206M monthly and -NZ$4,110M 12-month year-to-date. Exports for October were reported at NZ$5.35B and Imports at NZ$6.64B. Forex traders can compare this to Exports for September, reported at NZ$4.36B, and Imports, reported at NZ$6.57B.

Australian Private Capital Expenditure for the third quarter decreased 2.2% quarterly. Economists predicted a decrease of 2.0% quarterly. Forex traders can compare this to Australian Private Capital Expenditure for the second quarter, which increased 4.4% quarterly. Australian Building Capital Expenditure for the third quarter decreased 0.2% quarterly. Forex traders can compare this to Australian Building Capital Expenditure for the second quarter, which increased 4.6% quarterly. Australian Plant & Machinery Capital Expenditure for the third quarter decreased 4.1% quarterly. Forex traders can compare this to Australian Plant & Machinery Capital Expenditure for the second quarter, which increased 4.3% quarterly.

The forecast for the AUD/NZD turned bearish after price action advanced into its descending Ichimoku Kinko Hyo Cloud. Downside pressures increased after the Senkou Span A crossed below the Senkou Span B, resulting in a bearish crossover. The Kijun-sen flatlined, suggesting the lack of short-term upside pressure, but the Tenkan-sen continues to drift higher, creating higher volatility in the near term. After the CCI surged into extreme overbought territory, traders should wait for a breakdown below 100 before selling this currency pair. Can bears regain control over the AUD/NZD and force it back down 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 1.0460 to 1.0500 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.0480
• Take Profit Zone: 1.0280 – 1.0310
• Stop Loss Level: 1.0530

Should price action for the AUD/NZD breakout above 1.0500, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.0560
• Take Profit Zone: 1.0590– 1.0610
• Stop Loss Level: 1.0500

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