Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Business PMI for June came in at 41.1. Forex traders can compare this to the New Zealand Business PMI for May, reported at 47.2.
New Zealand Electronic Retail Card Spending for June contracted 0.6% monthly and 4.9% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for May, which dropped by 1.2% monthly and 1.6% annualized.
The Chinese Trade Balance for June came in at $99.05B. Economists predicted a figure of $85.00B. Forex traders can compare this to the Chinese Trade Balance for May, reported at $82.62B. Exports for June surged by 8.6% annualized, and Imports dropped by 2.3% annualized. Economists predicted an increase of 8.0% and 2.8%. Forex traders can compare this to Exports for May, which rose by 7.6% annualized, and Imports, which increased by 1.8% annualized.
The US PPI for June is predicted to rise by 0.1% monthly and 2.3% annualized. Forex traders can compare this to the US PPI for May, which decreased by 0.2% monthly and accelerated by 2.2% annualized. The US Core PPI for June is predicted to expand by 0.2% monthly and by 2.5% annualized. Forex traders can compare this to the US Core PPI for May, which was flat at 0.0% monthly and expanded by 2.3% annualized.
Preliminary US Michigan Consumer Sentiment for July is predicted at 68.5. Forex traders can compare this to US Michigan Consumer Confidence for June, reported at 68.2. Preliminary Current Conditions for July are expected at 66.3, and Preliminary Expectations are predicted at 69.8. Forex traders can compare this to Current Conditions for June, reported at 65.9, and Expectations, reported at 69.6.
The forecast for the NZD/USD remains bearish after this currency pair broke down below its horizontal support area, turning it into resistance. The Kijun-sen and the Tenkan-sen flatlined following a bearish crossover. The Ichimoku Kinko Hyo Cloud continues to narrow, with the Senkou Span A moving lower and the Senkou Span B ascending. Traders should also monitor the CCI after moving below zero. This technical indicator has more downside to lead price action lower. Can bears maintain control over the NZD/USD and force this currency pair 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 0.6080 to 0.6115 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6100
- Take Profit Zone: 0.5935 – 0.5980
- Stop Loss Level: 0.6160
Should price action for the NZD/USD break out above 0.6115, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6160
- Take Profit Zone: 0.6215 – 0.6255
- Stop Loss Level: 0.6115
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