While New Zealand reported a further slowdown in its services sector, all attention today is on Chinese data. The second-quarter GDP decreased to the lowest level on record which took the headlines, but June economic data out of Asia’s largest economy pointed towards a rebound in economic activity despite the trade war the US started. The NZDUSD pressured resistance, but do bulls have the power for a breakout? Subscribe to the PaxForex Daily Fundamental Analysis where you will grow your account balance trade-by-trade.
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 June was reported at 52.7. Forex traders can compare this to the New Zealand Performance of Services Index for May which was reported at 53.5.
- New Zealand Migration: Permanent/Long-Term Migration for May was reported at 4,240. Forex traders can compare this to Permanent/Long-Term Migration for April which was reported at 3,890. Visitor Arrivals for May decreased by 0.2% monthly and External Migration & Visitors decreased by 1.2% monthly. Forex traders can compare this to Visitor Arrivals for April which decreased by 3.2% monthly and to External Migration & Visitors which increased by 8.3% monthly.
- Chinese New Home Prices: Chinese New Home Prices for June increased by 0.66% monthly. Forex traders can compare this to Chinese New Home Prices for May which increased by 0.71% monthly.
- Chinese Retail Sales: Chinese Retail Sales for June increased by 9.8% annualized. Economists predicted an increase of 8.5% annualized. Forex traders can compare this to Chinese Retail Sales for May which increased by 8.6% annualized.
- Chinese Industrial Production: Chinese Industrial Production for June increased by 6.3% annualized. Economists predicted an increase of 5.2% annualized. Forex traders can compare this to Chinese Industrial Production for May which increased by 5.0% annualized.
- Chinese Fixed Assets ex Rural: Chinese Fixed Assets ex Rural for June increased by 5.8% annualized. Economists predicted an increase of 5.5% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for May which increased by 5.6% annualized.
- Chinese Surveyed Jobless Rate: The Chinese Surveyed Jobless Rate for June was reported at 5.1%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for May which was reported at 5.0%.
- Chinese GDP: The Chinese GDP for the second-quarter increased by 1.6% quarterly and by 6.2% annualized. Economists predicted an increase of 1.5% quarterly and of 6.2% annualized. Forex traders can compare this to the Chinese GDP for the first-quarter which increased by 1.4% quarterly and by 6.4% annualized.
Forex traders will get Swiss PPI data this morning which is expected to show a steepening of deflationary pressures on an annualized level. How active was the Swiss National Bank in the forex market? The Swiss economy has printed solid economic figures, will this trend continue? Bearish pressures are on the rise which could result in a short-term sell-off in the NZDCHF, but will bulls take this opportunity to launch another move to the upside or can bears force an longer-lasting correction? Today’s fundamental analysis will explore both possibilities.
Here are the key factors to keep in mind today for Swiss Franc trades:
- Swiss Producer & Import Prices: Swiss Producer & Import Prices for June are predicted to increase by 0.1% monthly and to decrease by 0.9% annualized. Forex traders can compare this to Swiss Producer & Import Prices for May which were reported flat at 0.0% monthly and which decreased by 0.8% annualized.
- Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of July 12th are predicted at CHF578.2B and Swiss Domestic Sight Deposits are predicted at CHF475.7B. Forex traders can compare this to Swiss Total Sight Deposits for the week of July 5th which were reported at CHF579.0B and to Swiss Domestic Sight Deposits which were reported at CHF476.1B.
Should price action for the NZDCHF remain inside the or breakdown below the 0.6585 to 0.6635 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6610
- Take Profit Zone: 0.6420 – 0.6475
- Stop Loss Level: 0.6675
Should price action for the NZDCHF breakout above 0.6635 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6675
- Take Profit Zone: 0.6765 – 0.6800
- Stop Loss Level: 0.6635
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