Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Unemployment Rate for the third quarter stood at 4.8%. Economists predicted an Unemployment Rate of 5.0%. Forex traders can compare this to the Unemployment Rate for the second quarter, reported at 4.6%. The Employment Change for the third quarter decreased by 0.5%. Economists predicted a decrease of 0.4%. Forex traders can compare this to the Employment Change for the second quarter, which increased by 0.2% quarterly. The Participation Rate for the third quarter was 71.2%. Economists predicted a Participation Rate of 71.5%. Forex traders can compare this to the Participation Rate for the second second, reported at 71.7%. The Labor Cost Index for the third quarter increased 0.6% quarterly and 3.4% annualized. Economists predicted a rise of 0.7% and 3.4%. Forex traders can compare this to the Labor Cost Index for the second quarter, which expanded 0.9% quarterly and 3.6% annualized.
The Australian AiG Construction Index for October came in at -40.9. Forex traders can compare this to the Australian AiG Construction Index for September, reported at -19.8. The AiG Manufacturing Index for October came in at -19.7. Forex traders can compare this to the AiG Manufacturing Index for September, reported at -33.6.
The forecast for the AUD/NZD turned cautiously bearish after this currency pair advanced into its horizontal resistance area with decreasing upside momentum. The Tenkan-sen flatlined, with the Kijun-sen moving higher, confirming more short-term volatility. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat, suggesting the absence of medium-term bullishness. Traders should also monitor the CCI after recording a lower low in extreme oversold territory followed by a double breakout. This technical indicator has lost upside momentum, and a drop below zero could spark the next sell-off. Can bears control 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 1.1025 to 1.1050 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1035
- Take Profit Zone: 1.0850 – 1.0855
- Stop Loss Level: 1.1090
Should price action for the AUD/NZD break out above 1.1050, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1090
- Take Profit Zone: 1.1150 – 1.1200
- Stop Loss Level: 1.1050
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