Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Current Account Balance for the second quarter came in at -NZ$27.76B annualized, with the Current Account-to-GDP Ratio at -6.7%. Forex traders can compare this to the New Zealand Current Account Balance for the first quarter, reported at -NZ$27.62B annualized, with the Current Account-to-GDP Ratio at -6.7%.
The New Zealand GDP for the second quarter decreased by 0.2% quarterly and 0.5% annualized. Economists predicted a drop of 0.4% and 0.5%. Forex traders can compare this to the New Zealand GDP for the first quarter, which rose by 0.1% quarterly and 0.5% annualized. The New Zealand GDP Annual Average for the second quarter contracted by 0.2% quarterly, and GDP Expenditure was flat at 0.0% quarterly. Forex traders can compare this to the New Zealand GDP Annual Average for the first quarter, which increased by 0.3% quarterly, and GDP Expenditure, which rose by 0.3% quarterly.
The Australian Employment Change for August came in at 47.5K, and the Unemployment Rate at 4.2%. Economists predicted a figure of 26.4K and 4.2%. Forex traders can compare this to the Australian Employment Change for July, reported at 48.9K, and the Unemployment Rate reported at 4.2%. 3.1K Full-Time Positions were lost in August. Forex traders can compare this to the creation of 64.7K Full-Time Positions reported in July. The Labor Force Participation Rate for August came in at 67.1%. Economists predicted a reading of 67.1%. Forex traders can compare this to the Labor Force Participation Rate for July, reported at 67.1%.
Total Australian Reserve Assets for August came in at A$93.1B. Forex traders can compare this to Total Australian Reserve Assets for July, reported at A$96.2B.
The forecast for the AUD/NZD turned bearish after this currency pair rose into its horizontal resistance area. The descending Senkou Span A and Senkou Span B of the Ichimoku Kinko Hyo Cloud provide downside pressure following a bearish crossover. The Kijun-sen is flat, but the Tenkan-sen started to drift higher, closing the gap but with a bearish bias. Traders should also monitor the CCI in extreme overbought territory. A breakdown below 100 could trigger the next leg lower. Can bears regain control over 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 1.0915 to 1.0970 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0935
- Take Profit Zone: 1.0780 – 1.0815
- Stop Loss Level: 1.0995
Should price action for the AUD/NZD break out above 1.0970, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0995
- Take Profit Zone: 1.1045 – 1.1200
- Stop Loss Level: 1.1070
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