Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Roy Morgan Consumer Confidence Index for December came in at 73.8. Forex traders can compare this to the New Zealand ANZ Roy Morgan Consumer Confidence Index for November, reported at 80.7.
The New Zealand Trade Balance for November came in at -NZ$1,863M monthly and at -NZ$14,630M annualized. Forex traders can compare this to the New Zealand Trade Balance for October, reported at -NZ$2,298M monthly and -NZ$13,860M annualized. Exports for November came in at NZ$6.68B, and Imports at NZ$8.54B. Forex traders can compare this to Exports for October, reported at NZ$5.96B, and Imports, reported at NZ$8.26B.
New Zealand Credit Card Spending for November surged 16.0% annualized. Forex traders can compare this to New Zealand Credit Card Spending for October, which sky-rocketed 24.6% annualized.
The US Current Account Balance for the third quarter is predicted at -$222.0B. Forex traders can compare this to the US Current Account Balance for the second quarter, reported at -$251.1B.
US Consumer Confidence for December is predicted at 101.0. Forex traders can compare this to US Consumer Confidence for November, reported at 100.2.
US Existing Home Sales for November are predicted to plunge 5.4% monthly to 4.20M. Forex traders can compare this to US Existing Home Sales for October, which dropped 5.9% monthly to 4.43M.
US Crude Oil Inventories for the week ending December 16th are predicted at -1.657M. Traders can compare this to US Crude Oil Inventories for the week ending December 9th, reported at 10.231M. US Gasoline Inventories for the week ending December 16th are predicted at 2.140M, and US Distillate Stocks at 0.336M. Traders can compare this to US Gasoline Inventories for the week ending December 9th, reported at 4.496M, and US Distillate Stocks at 1.364M. Weekly Refinery Utilization Rates for the week ending December 16th decreased by 0.1% week-over-week. Forex traders can compare this to Weekly Refinery Utilization Rates for the week ending December 9th, which plunged 3.3% week-over-week.
The forecast for the NZD/USD remains bearish in the short-term, while the long-term outlook favors more upside. After the horizontal resistance area rejected price action, the Tenkan-sen, the Kijun-sen, and the Ichimoku Kinko Hyo Cloud flatlined, confirming the absence of bullish momentum. All three indicators are vulnerable to a correction, which could drag price action lower. Forex traders should monitor the CCI following its rapid collapse from extreme overbought territory into extreme oversold conditions. A false breakout could precede an extension of the current correction. Can bears maintain downside pressure on the NZD/USD and pressure price action 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/USD remain inside the or breakdown below the 0.6240 to 0.6345 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6300
- Take Profit Zone: 0.5975 – 0.6085
- Stop Loss Level: 0.6400
Should price action for the NZD/USD breakout above 0.6345, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6400
- Take Profit Zone: 0.6470 – 0.6510
- Stop Loss Level: 0.6345
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