The New Zealand GDP came in better than expected for the third quarter, but the second-quarter GDP was revised lower. An increase in exports was countered by a rise in imports and resulted in a widening of the trade deficit. The NZDUSD remained inside its horizontal resistance area as forex traders now await US data. Will it allow bulls to force a breakout or will bears pressure for a breakdown? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Forex traders await US initial jobless claims to gauge if last week’s spike was an anomaly or if it will be repeated. Housing data and leading indicators will also be closely watched as 2019 is coming to a close. The NZDUSD retreated from its most recent peak, but what impact will US data have on price action today? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand GDP: The New Zealand GDP for the third-quarter increased by 0.7% quarterly and by 2.3% annualized. Economists predicted an increase of 0.5% quarterly and 2.3% annualized. Forex traders can compare this to the New Zealand GDP for the second quarter, which increased by 0.1% quarterly and by 2.1% annualized.
- New Zealand Trade Balance: The New Zealand Trade Balance for November was reported at -NZ$753M monthly and at -NZ$4,816M 12-month year-to-date. Economists predicted a figure of -NZ$700M and of -NZ$4,730M. Forex traders can compare this to the New Zealand Trade Balance for October, which was reported at -NZ$1,039M monthly and at -NZ$5,067M 12-month year-to-date. Exports for November were reported at NZ$5.23B and Imports were reported at NZ$5.98B. Economists predicted a figure of NZ$5.10B and NZ$5.80B. Forex traders can compare this to Exports for October, which were reported at NZ$5.01B and to Imports, which were reported at NZ$6.05B.
Here are the key factors to keep in mind today for US Dollar trades:
- US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of December 14th are predicted at 225K and US Continuing Claims for the week of December 7th are predicted at 1,671K. Forex traders can compare this to US Initial Jobless Claims for the week of December 7th, which were reported at 252K and to US Continuing Claims for the week of November 30th, which were reported at 1,667K.
- US Philadelphia Fed Business Outlook: The Philadelphia Fed Business Outlook for December is predicted at 8.0. Forex traders can compare this to the Philadelphia Fed Business Outlook for November, which was reported at 10.4.
- US Current Account Balance: The US Current Account Balance for the third-quarter is predicted at -$122.0B. Forex traders can compare this to the US Current Account Balance for the second quarter, which was reported at -$128.2B.
- US Existing Home Sales: US Existing Home Sales for November are predicted to decrease by 0.4% monthly to 5.44M. Forex traders can compare this to US Existing Home Sales for October, which increased by 1.9% monthly to 5.46M.
- US Leading Index: The US Leading Index for November is predicted to increase by 0.1% monthly. Forex traders can compare this to the US Leading Index for October, which decreased by 0.1% monthly.
Should price action for the NZDUSD remain inside the or breakout above the 0.6555 to 0.6610 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6590
- Take Profit Zone: 0.6725 – 0.6790
- Stop Loss Level: 0.6540
Should price action for the NZDUSD breakdown below 0.6555 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6540
- Take Profit Zone: 0.6325 – 0.6380
- Stop Loss Level: 0.6590
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you trade with one of the most trusted MT4 forex brokers? Sign-up with PaxForex today and join one of the fastest-growing trading communities in the forex market.
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
