Here is the key factor to keep in mind today for New Zealand trades:
- Credit Card Spending: Credit card spending rose 1.9% in January month-over-month 6.2% year-over-year. This was a much better report than December where credit card spending contracted by 0.5% month-over-month and rose 4.5% year-over-year. A healthy consumer is important for strong economic growth which in return will benefit the New Zealand Dollar and drive it higher. Despite the positive report released out of New Zealand the New Zealand Dollar sold off and traded lower against the US Dollar, but rallied against the Australian Dollar.
Here are the key factors to keep in mind today for US Dollar trades:
- Chicago Fed National Activity Index: Economists expect the -0.05 level reported in December to be erased with an increase of 0.05 for January. Even with that increase it would point to a stagnant US economy. Forex traders should be careful with the US Dollar which could enter a sell-off during the trading session.
- Existing Home Sales: More US Dollar negative news is expected to come out of existing home sales which are expected to show a contraction of 1.8% in January month-over-month. This will almost reverse all of the 2.4% increase reported in December and drop the two month average close to standstill as well.
- Dallas Fed Manufacturing Index: The last bearish report for the US Dollar will comes out of the Dallas Fed which will report its Manufacturing Index. Economists expected a level of -4.0 for February which would follow the -4.4 reported in January. Three reports pointing towards economic weakness in the US will make an advance in the US Dollar very unlikely during today’s trading session.
Should price action for the NZDUSD remain inside the0.7475 to 0.7525 zone or breakout above it the following trade set-up is recommended:
- Timeframe: H1
- Recommendation: Long Position
- Entry Level: Short Position @ 0.7500
- Take Profit Zone: 0.7575 – 0.7600
- Stop Loss Level: 0.7450
Should price action for the NZDUSD breakdown above 0.7475 the following trade set-up is recommended:
- Timeframe: H1
- Recommendation: Short Position
- Entry Level: Long Position @ 0.7450
- Take Profit Zone: 0.7175 – 0.7200
- Stop Loss Level: 0.7525
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
