The New Zealand Trade Balance featured a surprise as exports increased more than expected, but this may be an anomaly as it represents one rare data point which came in stronger than expected. This follows the upside surprise in Chinese economic data for September and is most likely associated with it. The NZDUSD remained steady at support, will bulls attempt to push price action higher? Today’s fundamental analysis will take a look at price action in both directions.
The economic calendar is extremely thin today which will allow forex traders to focus on existing trends. The US House Price Index will play a greater role than usual following yesterday’s disappointing housing data and in the absence of other reports. With more US central bank easing and the continued funding issues in the repo market, how will the NZDUSD trade after its advance? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here is the key factor to keep in mind today for New Zealand Dollar trades:
- New Zealand Trade Balance: The New Zealand Trade Balance for September was reported at -NZ$1,242M monthly and at -NZ$5,210M 12-month year-to-date. Economists predicted a figure of -NZ$1,375M and of -NZ$5,254M. Forex traders can compare this to the New Zealand Trade Balance for August which was reported at NZ$1,565M monthly and at -NZ$5,484M 12-month year-to-date. Exports for September were reported at NZ$4.47B and Imports were reported at NZ$5.71B. Economists predicted a figure of NZ$4.30B and of NZ$5.70B. Forex traders can compare this to Exports for August which were reported at NZ$4.13B and to Imports which were reported at NZ$5.69B.
Here is the key factor to keep in mind today for US Dollar trades:
- US House Price Index: The US House Price Index for August is predicted to increase by 0.4% monthly. Forex traders can compare this to US House Price Index for July which increased by 0.4% monthly.
Should price action for the NZDUSD remain inside the or breakout above the 0.6385 to 0.6415 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6400
- Take Profit Zone: 0.6565 – 0.6615
- Stop Loss Level: 0.6355
Should price action for the NZDUSD breakdown below 0.6385 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6355
- Take Profit Zone: 0.6200 – 0.6240
- Stop Loss Level: 0.6385
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