Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for September came in at -NZ$2,329M monthly and at -NZ$15,330M annualized. Forex traders can compare this to the New Zealand Trade Balance for August, reported at -NZ$2,273M monthly and -NZ$15,520M annualized. Exports for September came in at NZ$4.87B and Imports at NZ$7.20B. Forex traders can compare this to Exports for August, reported at NZ$4.97B, and Imports at NZ$7.24B.
New Zealand Credit Card Spending for September rose 3.3% annualized. Forex traders can compare this to New Zealand Credit Card Spending for August, which increased 4.3% annualized.
The Chinese 1-Year Loan Prime Rate for October was reported at 3.45%, and the Chinese 5-Year Loan Prime Rate at 4.20%. Economists predicted a figure of 3.45% and 4.20%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for September, reported at 3.45%, and the Chinese 5-Year Loan Prime Rate at 4.20%.
UK GfK Consumer Confidence for October came in at -30. Economists predicted a figure of -20. Forex traders can compare this to UK GfK Consumer Confidence for September, reported at -21.
UK Retail Sales for September contracted by 0.9% monthly and 1.0% annualized. Economists predicted a decrease of 0.2% and 0.1%. Forex traders can compare this to UK Retail Sales for August, which rose by 0.4% monthly and dropped by 1.3% annualized. UK Core Retail Sales for September declined by 1.0% monthly and 1.2% annualized. Economists predicted a contraction of 0.4% and 0.2%. Forex traders can compare this to UK Core Retail Sales for August, which expanded by 0.6% monthly and declined by 1.3% annualized.
UK Public Sector Net Borrowing for September came in at -£13.526B, and UK Public Sector Net Cash Requirements at -£14.347B. Economists predicted a reading of -£17.600B and -£19.000B. Forex traders can compare this to UK Public Sector Net Borrowing for August, reported at -£10.576B, and to UK Public Sector Net Cash Requirements at -£11.397B.
The forecast for the GBP/NZD remains cautiously bullish after this currency pair accelerated off its horizontal support area. Volatility could rise with the Kijun-sen descending and the Tenkan-sen flat while the Ichimoku Kinko Hyo Cloud narrows. Traders should also monitor the CCI in extreme overbought territory and wait for a breakdown to assess if this technical indicator can remain above zero before entering new buy orders. Will bulls maintain control over the GBP/NZD and drive price action 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 2.0745 to 2.0845 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 2.0785
- Take Profit Zone: 2.1125– 2.1260
- Stop Loss Level: 2.0655
Should price action for the GBP/NZD breakdown below 2.0745 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 2.0655
- Take Profit Zone: 2.0485 – 2.0560
- Stop Loss Level: 2.0745
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