Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Reserve Bank of New Zealand kept interest rates unchanged at 5.50%. Economists predicted no change in interest rates. Forex traders can compare this to the Reserve Bank of New Zealand’s previous interest rate announcement, where rates were unchanged at 5.50%.
The Advanced US GDP for the third quarter is predicted to increase 4.9% quarterly. Forex traders can compare this to the second quarter GDP, which rose 2.1% quarterly. Real Consumer Spending is predicted to accelerate by 4.0% quarterly and GDP Sales by 3.5% quarterly. Forex traders can compare this to second-quarter Real Consumer Spending, which expanded by 0.8% quarterly, and GDP Sales by 2.1% quarterly. The GDP Price Index for the third quarter is predicted to increase 3.5% quarterly. Forex traders can compare this to the second quarter GDP Price Index, which increased 2.1% quarterly. The PCE for the third quarter is predicted to expand 2.9% quarterly, and the Core PCE to rise 2.4% quarterly. Forex traders can compare this to the second quarter PCE, which rose 2.5% quarterly, and the core PCE, which accelerated by 3.7% annualized.
The US Trade Balance for October is predicted at -$86.70B. Forex traders can compare this to the US Trade Balance for September, reported at -$86.84B.
US Preliminary Wholesale Inventories for October are predicted to rise by 0.1% monthly. Forex traders can compare this to US Wholesale Inventories for September, which increased 0.2% monthly.
US Crude Oil Inventories Change for the week ending November 24th are predicted at -0.933M. Traders can compare this to US Crude Oil Inventories Change for the week ending November 17th, reported at 8.701M. US Gasoline Inventories Change for the week ending November 24th are predicted at 0.229M, and US Distillate Stocks Change at -0.394M. Traders can compare this to US Gasoline Inventories Change for the week ending November 17th, reported at 0.749M, and US Distillate Stocks Change at -1.018M.
The forecast for the NZD/USD is cautiously bearish after this currency pair accelerated into its horizontal resistance area. The Kijun-sen and the Tenkan-sen move higher, but the Ichimoku Kinko Hyo Cloud flatlined in a narrow trend following a bullish crossover, suggesting the lack of upside momentum. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence formed. A breakdown below 100 could trigger a price action reversal. Can bears overpower bulls and force the NZD/USD 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 0.6150 to 0.6210 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6185
- Take Profit Zone: 0.600 – 0.6045
- Stop Loss Level: 0.6245
Should price action for the NZD/USD breakout above 0.6210, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6245
- Take Profit Zone: 0.6310 – 0.6345
- Stop Loss Level: 0.6210
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