Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Westpac Consumer Confidence for the third quarter came in at 90.8. Forex traders can compare this to New Zealand Westpac Consumer Confidence for the second quarter, reported at 82.2.
The New Zealand Current Account Balance for the second quarter came in at -NZ$4.83B quarterly and -NZ$27.76B annualized, with the Current Account-to-GDP Ratio at -6.7%. Forex traders can compare this to the New Zealand Current Account Balance for the first quarter, reported at -NZ$4.36B quarterly and -NZ$27.62B annualized, with the Current Account-to-GDP Ratio at -6.8%.
Japanese Machine Orders for July decreased 0.1% monthly and rose 8.7% annualized. Forex traders can compare this to Japanese Machine Orders for June, which expanded by 2.1% monthly and dropped by 1.7% annualized.
The Japanese Trade Balance for August came in at -¥695.3B, and the Japanese Adjusted Trade Balance at -¥0.60T. Economists predicted a reading of -¥1,380.0B and -¥0.96T. Forex traders can compare this to the Japanese Trade Balance for July, reported at -¥628.7B, and the Japanese Adjusted Trade Balance at -¥0.68T. Exports for August increased by 5.6% annualized and Imports by 2.3% annualized. Economists predicted an acceleration of 10.0% and 13.4%. Forex traders can compare this to Exports for July, which surged by 10.2% annualized, and Imports by 16.6% annualized.
The forecast for the NZD/JPY remains bearish, with this currency pair at its horizontal resistance area. The Tenkan-sen is moving lower with the Kijun-sen flat. The Senkou Span A of the Ichimoku Kinko Hyo Cloud drifts to the downside with the Senkou Span B flat, and both are expected to drift to the downside. Traders should also monitor the CCI following its breakout from extreme oversold territory with fading upside momentum. This technical indicator could reverse and lead the next leg lower with plenty of downside potential. 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 87.500 to 88.000 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 87.800
- Take Profit Zone: 83.000 – 83.850
- Stop Loss Level: 88.950
Should price action for the NZD/JPY break out above 88.000, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 88.950
- Take Profit Zone: 91.000 – 91.650
- Stop Loss Level: 88.000
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