Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian CPI for the third quarter increased by 1.8% quarterly and 7.3% annualized. Economists predicted an expansion of 1.6% quarterly and 7.0% annualized. Forex traders can compare this to the Australian CPI for the second quarter, which rose 1.8% quarterly and 6.1% annualized. The RBA Trimmed Mean CPI for the third quarter increased by 1.8% quarterly and 6.1% annualized. Economists predicted a rise of 1.5% quarterly and 5.6% annualized. Forex traders can compare this to the RBA Trimmed Mean CPI for the second quarter, which expanded 1.5% quarterly and 4.2% annualized. The RBA Weighted Median CPI for the third quarter rose 1.4% quarterly and 5.0% annualized. Economists predicted an increase of 1.5% quarterly and 4.8% annualized. Forex traders can compare this to the RBA Weighted Median CPI for the second quarter, which expanded by 1.4% quarterly and 4.2% annualized.
The New Zealand ANZ Activity Outlook for October decreased by 2.5%, and ANZ Business Confidence came in at -42.7. Forex traders can compare this to the New Zealand ANZ Activity Outlook for September, which dropped 1.8%, and to ANZ Business Confidence, reported at -36.7.
Financial markets continued their bear market rally, but traders must be aware of the bull trap. Third-quarter earnings season remains mixed, and big tech earnings disappoint. With borrowing costs and bond yields rising, financial markets have not reached a bottom yet, and selling the rally is something traders should consider. Inflation remains elevated and increases while initial fourth-quarter economic reports point to a worsening economic slowdown.
The forecast for the AUD/NZD remains bearish but volatile after this currency pair bounded off its horizontal support area following a breakdown below its Ichimoku Kinko Hyo Cloud. Price action reversed and presently challenges the Senkou Span B, which could reject further upside. The descending Senkou Span A threatens upside potential, and a bearish crossover could initiate a prolonged sell-off. Adding to downside pressures is the descending Tenkan-sen after it completed a bearish crossover, but the flat Kijun-sen offers more signs of a volatility pick-up. Traders should monitor the CCI after its breakout from extreme oversold territory. A move above zero is possible, but a lower high could force this technical indicator lower with plenty of downside potential. Can bears withstand bullish attacks and pressure the AUD/NZD 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 1.1050 to 1.1170 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1140
- Take Profit Zone: 1.0805– 1.0860
- Stop Loss Level: 1.1240
Should price action for the AUD/NZD breakout above 1.1170, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1240
- Take Profit Zone: 1.1300– 1.1340
- Stop Loss Level: 1.1170
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
