Source: PaxForex Premium Analytics Portal, Fundamental Insight
The latest New Zealand Economic Forecast published by the New Zealand Treasury for January came in at -NZ$11,070B. Forex traders can compare this to the New Zealand Economic Forecast for December, reported at -NZ$9,319B. The Net Debt Forecast for January came in at 43.10%, and the Budget Balance at -NZ$21.860N. Forex traders can compare this to the Net Debt Forecast for December, reported at 43.50%, and the Budget Balance at -NZ$25.800B.
US Initial Jobless Claims for the week of May 25th are predicted at 218K, and US Continuing Claims for the week of May 18th at 1,800K. Forex traders can compare this to US Initial Jobless Claims for the week of May 18th, reported at 215K, and US Continuing Claims for the week of May 11th, reported at 1,794K.
The advanced US GDP for the first quarter is predicted to rise by 1.6% quarterly. Forex traders can compare this to the fourth quarter GDP, which increased by 3.4% quarterly. Advanced GDP Sales for the first quarter are predicted to rise by 2.0% quarterly and Corporate Profits by 3.9% quarterly. Forex traders can compare this to fourth-quarter GDP Sales, which rose by 3.9% quarterly, and Corporate Profits by 3.7% quarterly. The advanced GDP Price Index for the first quarter is predicted to expand by 3.1% quarterly. Forex traders can compare this to the fourth quarter GDP Price Index, which rose 1.7% quarterly. The Advanced PCE for the first quarter is predicted to increase by 3.4% quarterly, and the Core PCE by 3.7% quarterly. Forex traders can compare this to the PCE for the fourth quarter, which expanded 1.8% quarterly, and the Core PCE, which rose 2.0% quarterly. Advanced Real Consumer Spending for the first quarter is predicted to increase by 2.5% quarterly. Forex traders can compare this to Real Consumer Spending for the fourth quarter, which rose 3.3% quarterly.
The US Trade Balance for April is predicted at -$91.90B. Forex traders can compare this to the US Trade Balance for March, reported at -$91.54B.
US Preliminary Wholesale Inventories for April are predicted flat at 0.0% monthly. Forex traders can compare this to US Wholesale Inventories for March, which decreased by 0.4% monthly.
US Pending Home Sales for April are predicted to decrease by 1.1% monthly. Forex traders can compare this to US Pending Home Sales for March, which rose 3.4% monthly.
The forecast for the NZD/USD is bearish after this currency pair broke down below its flat Tenkan-sen, clearing the path to test its flat Kijun-sen. The Ichimoku Kinko Hyo Cloud has narrowed, and the Senkou Span A is below the Senkou Span B, confirming bearish pressures are dominant. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero, with plenty of downside potential. Can bears remain in control over the NZD/USD and force 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 0.6070 to 0.6125 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6095
- Take Profit Zone: 0.5885 – 0.5945
- Stop Loss Level: 0.6145
Should price action for the NZD/USD break out above 0.6125, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6145
- Take Profit Zone: 0.6215 – 0.6255
- Stop Loss Level: 0.6125
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