Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand CPI for the first quarter rose 1.8% quarterly and 6.9% annualized. Economists predicted an increase of 2.0% and 7.1%. Forex traders can compare this to the New Zealand CPI for the fourth quarter, which expanded 1.4% quarterly and 5.9% annualized. New Zealand RBNZ Offshore Holdings for March came in at 53.70%. Forex traders can compare this to New Zealand RBNZ Offshore Holdings for February, reported at 53.8%.
US Initial Jobless Claims for the week of April 16th are predicted at 180K, and US Continuing Claims for the week of April 9th are predicted at 1,455K. Forex traders can compare this to US Initial Jobless Claims for the week of April 9th, reported at 185K, and to US Continuing Claims for the week of April 2nd, reported at 1,475K.
The Philadelphia Fed Manufacturing Index for April is predicted at 21.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for March, reported at 27.4. The US Leading Index for March is predicted to increase by 0.3% monthly. Forex traders can compare this to the US Leading Index for February, which rose 0.9% monthly.
Inflation data continues to dominate headlines, as inflationary readings globally come in higher than expected, flirting with four-decade highs. Yesterday’s inflation data showed the German PPI surging past 30.0% annualized, while the South African and Canadian CPI’s also marched higher. Traders await the Eurozone CPI as the European Central Bank might have to tighten monetary policy faster than previously anticipated. The Euro has been under pressure for most of 2022, waiting for a catalyst to trigger a short-covering rally. Another hotly anticipated inflation report will come out of Japan, where the Japanese Yen continues its destructive price action collapse. The Bank of Japan eyes the 130 level in the USD/JPY before they might interfere in the Forex market.
The forecast for the NZD/USD remains bullish after this currency pair found support at its ascending Ichimoku Kinko Hyo Cloud. Adding to bullish developments are the flat Kijun-sen and Tenkan-sen after they flatlined, suggesting the absence of downside pressure. Traders should also monitor the CCI following its breakout from extreme oversold territory. It has plenty of upside potential, and a move above zero could attract more buyers. Can bulls add to recent developments and pressure the NZD/USD into its horizontal resistance area and a fresh 2022 high? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/USD remain inside the or breakout above 0.6750 to 0.6835 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6790
- Take Profit Zone: 0.6990 – 0.7035
- Stop Loss Level: 0.6720
Should price action for the NZD/USD breakdown below 0.6750, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6720
- Take Profit Zone: 0.6630 – 0.6655
- Stop Loss Level: 0.6750
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