Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Terms of Trade Index for the second quarter rose by 2.1% quarterly, and Export Volume dropped by 4.3% quarterly. Forex traders can compare this to the New Zealand Terms of Trade Index for the first quarter, which increased 5.1% quarterly, and Export Volume, which surged 6.3%. Export prices for the second quarter accelerated by 5.2% quarterly, and Import Prices increased by 3.1%. Economists predicted a rise of 2.8% and 0.5%. Forex traders can compare it to Export Prices for the first quarter, which decreased by 0.3%, and Import Prices, which dropped by 5.1%.
The Final US S&P Global Manufacturing PMI for August is predicted at 48.0. Forex traders can compare this to the US S&P Global Manufacturing PMI for July, reported at 49.6.
US Construction Spending for July is predicted to rise 0.1% monthly. Forex traders can compare this to US Construction Spending for June, which decreased 0.3% monthly.
The US ISM Manufacturing Index for August is predicted at 47.5, and ISM Prices Paid at 52.1. Forex traders can compare this to the US ISM Manufacturing Index for July, reported at 46.8, and ISM Prices Paid at 52.9.
The US IBD/TIPP Economic Optimism Index for September is predicted at 46.2. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for August, reported at 44.5.
The forecast for the NZD/USD is bearish after a horizontal resistance area rejected the continuation of the rally. This currency pair currently trades above its flat Kijun-sen but below its flat Tenkan-sen. The Senkou Span A of the Ichimoku Kinko Hyo Cloud completed a bullish crossover above the Senkou Span B. Both are flat, and the narrow Ichimoku Kinko Hyo Cloud is vulnerable to a bearish crossover following three days of selling. Traders should also monitor the CCI after breaking down from extreme overbought territory. A move below zero could trigger the next leg lower, and this technical indicator has plenty of downside potential. Can bears maintain 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 0.6160 to 0.6215 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6190
- Take Profit Zone: 0.5995 – 0.6035
- Stop Loss Level: 0.6255
Should price action for the NZD/USD break out above 0.6215, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6255
- Take Profit Zone: 0.6300 – 0.6315
- Stop Loss Level: 0.6215
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