Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Business PMI for December came in at 47.2. Forex traders can compare this to the New Zealand Business PMI for November, reported at 47.4.
New Zealand Permanent/Long-Term Migration for November came in at 6,110. Forex traders can compare this to Permanent/Long-Term Migration for October, reported at 3,857. External Migration & Visitors for November increased by 4,257.0% monthly. Forex traders can compare this to External Migration & Visitors for October, which rose 4,283.8% monthly.
The Chinese 1-Year Loan Prime Rate for January was reported at 3.65%, and the Chinese 5-Year Loan Prime Rate was at 4.30%. Economists predicted a figure of 3.65% and 4.30%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for December, reported at 3.65%, and the Chinese 5-Year Loan Prime Rate reported at 4.30%.
New Zealand Prime Minister Jacinda Ardern announced her resignation and will step down by February 7th, 2023. She cited burnout as the reason for her resignation after serving in her post for five years. Sources cite her falling poll numbers and online hate speech against her as the primary reasons for her shocked resignation. Her left-wing Labour Party will meet on Sunday to elect a new Prime Minister. It requires 43 votes from the 64-member political party, and candidates must receive seven votes to land on the ballot, excluding their vote. The four frontrunners are Immigration, Police, and Transport Minister Chris Hipkins, Foreign Minister Nanaia Mahuta, Transport Minister Michael Wood, and Minister of Justice Kiri Allan. The New Zealand Dollar may lack trading volume and direction until New Zealand announces its next Prime Minister.
The forecast for the GBP/NZD remains bullish after this currency pair completed a breakout above its horizontal support area. The bullish crossover of the ascending Tenkan-sen above the flat Kijun-sen added upside momentum. Volatility could increase as price action could retest the upper band of its horizontal support area before accelerating higher, confirming the breakout. The Ichimoku Kinko Hyo Cloud has flattened out, and given the rise in bullish pressures, the Senkou Span A could drift higher and narrow the cloud. Traders should monitor the CCI after it spiked to a multi-week peak in extreme overbought territory. A breakdown below 100 followed by a reversal would give traders the final buy signal. Can bulls maintain upside pressure on the GBP/NZD and push it into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/NZD remain inside the or breakout above the 1.9245 to 1.9375 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9300
- Take Profit Zone: 1.9585– 1.9720
- Stop Loss Level: 1.9165
Should price action for the GBP/NZD breakdown below 1.9245 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9165
- Take Profit Zone: 1.8935 – 1.9000
- Stop Loss Level: 1.9245
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