New home loans as well as investment lending in Australia increased above expectations for July which added bullish momentum to the Australian Dollar. June’s data was also revised higher. China reported a smaller than expected trade surplus for August as exports posted a surprise contraction while imports decreased. This was largely due to a sharp contraction in exports to the US as a result of the trade war the Trump administration intensified over the past few weeks. China is shifting its focus to its growing domestic economy as a result, exports account for roughly 20% of its GDP and this number is expected to shrink further. Is bullish momentum in the AUDNZD strong enough for a breakout? This morning’s fundamental analysis will take a look at where price action may be headed next.

New Zealand reported a contraction in second-quarter manufacturing activity as well as manufacturing volume, almost reversing the first-quarter gains. This has resulted in first-half manufacturing activity grinding to a near standstill in the latest sign that the global economy is cooling off fast and heading towards a recession. The New Zealand Dollar came under mild selling pressure following the release of the data which kept the AUDNZD hovering inside of its horizontal resistance area. Can bulls push for a breakout and extend the rally? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this trade.