Eurozone industrial production will be in focus today as it is expected to confirm the ongoing global economic slowdown. While markets await more details about the announced partial trade deal between the US and China, it is not expected to prevent a potential recession. The Eurozone economy has slowed down faster than expected and joined other economies in the slide despite accommodative monetary policy. How will today’s economic data impact the EURNZD? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The Chinese trade surplus came in better-than-expected for September as imports plunged while exports decreased more than economists anticipated. This was the latest piece of evidence that the global economic slowdown continues. Optimism about the partial US-China trade deal is fading. How will Chinese lending data impact the EURNZD after its release? Today’s fundamental analysis will cover price action in both directions for this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- German Wholesale Price Index: The German Wholesale Price Index for September decreased by 0.4% monthly and by 1.9% annualized. Forex traders can compare this to the German Wholesale Price Index for August which decreased by 0.8% monthly and by 1.1% annualized.
- Eurozone Industrial Production: Eurozone Industrial Production for August is predicted to increase by 0.3% monthly and to decrease by 2.5% annualized. Forex traders can compare this to Eurozone Industrial Production for July which decreased by 0.4% monthly and by 2.0% annualized.
Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand Performance of Services Index: The New Zealand Performance of Services Index for September was reported at 54.4. Forex traders can compare this to the New Zealand Performance of Services Index for August which was reported at 54.6.
- Chinese Trade Balance: The Chinese Trade Balance for September was reported at $39.65B. Economists predicted a figure of $34.75B. Forex traders can compare this to the Chinese Trade Balance for August which was reported at $34.83B. Exports for September decreased by 3.2% annualized and Imports decreased by 8.5% annualized. Economists predicted a decrease of 2.8% and a decrease of 6.0%. Forex traders can compare this to Exports for August which decreased by 1.0% annualized and to Imports which decreased by 5.6% annualized.
- Chinese New Yuan Loans: Chinese New Yuan Loans for September are predicted at CNY1,360.0B. Forex traders can compare this to Chinese New Yuan Loans for August which were reported at CNY1,210.0B.
- Chinese Aggregate Financing: Chinese Aggregate Financing for September are predicted at CNY1,900.0B. Forex traders can compare this to Chinese Aggregate Financing for August which was reported at CNY1,980.0B.
Should price action for the EURNZD remain inside the or breakdown below the 1.7455 to 1.7545 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7500
- Take Profit Zone: 1.7000 – 1.7100
- Stop Loss Level: 1.7615
Should price action for the EURNZD breakout above 1.7545 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7615
- Take Profit Zone: 1.7730 – 1.7810
- Stop Loss Level: 1.7545
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