Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Business PMI for July came in at 51.2. Forex traders can compare this to the New Zealand Business PMI for June, reported at 54.7.
The Preliminary Japanese GDP for the second quarter increased 0.5% quarterly and 2.2% annualized. Economists predicted a rise of 0.6% and 2.5% annualized. Forex traders can compare this to the Japanese GDP for the first quarter, which was flat at 0.0% quarterly and expanded 0.1% annualized. Preliminary Private Consumption for the second quarter rose 1.1% quarterly, preliminary Capital Expenditure increased 1.40% quarterly, and preliminary External Demand was flat at 0.0% quarterly. Economists predicted an expansion of 1.3%, 0.9%, and 0.1%. Forex traders can compare this to Private Consumption for the first quarter, which increased 0.1% quarterly, Capital Expenditure, which dropped 0.7% quarterly, and External Demand, which decreased 0.4% quarterly.
Final Japanese Industrial Production for June rose 9.2% monthly and decreased 2.8% annualized. Forex traders can compare this to Japanese Industrial Production for May, which contracted 7.5% monthly and 3.1% annualized. Capacity Utilization for June increased by 7.6% monthly. Forex traders can compare this to Capacity Utilization for May, which plunged 9.7% monthly.
Chinese Industrial Production for July increased 3.8% annualized. Economists predicted an expansion of 4.6% annualized. Forex traders can compare this to Chinese Industrial Production for June, which rose 3.9% annualized.
Chinese Retail Sales for July rose 2.7% annualized. Economists predicted an increase of 5.0% annualized. Forex traders can compare this to Chinese Retail Sales for June, which expanded by 3.1% annualized.
Chinese Fixed Assets ex Rural for July expanded 5.7% annualized. Economists predicted a rise of 6.2% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for June, which increased 6.1% annualized.
The Chinese Surveyed Jobless Rate for July came in at 5.4%. Economists predicted 5.5%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for June, reported at 5.0%.
The forecast for the NZD/JPY remains bearish after its horizontal resistance area rejected price action and prevented a breakout. This currency pair now faces a volatile battle between bulls and bears, with the flat Kijun-sen suggesting the lack of short-term bullishness while the Tenkan-sen maintains its uptrend. The Ichimoku Kinko Hyo Cloud narrows and approaches a bearish crossover with the descending Senkou Span A positioned to move below the flat Senkou Span B. Traders should also monitor the CCI after it has formed a lower high in extreme overbought territory. A breakdown below 100 could trigger more selling pressure. Can bears overpower bulls and force the NZD/JPY into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/JPY remain inside the or breakdown below the 84.900 to 86.200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 85.500
- Take Profit Zone: 82.100 – 82.750
- Stop Loss Level: 86.800
Should price action for the NZD/JPY breakout above 86.200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 86.800
- Take Profit Zone: 87.650 – 88.550
- Stop Loss Level: 78.400
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