NZD/USD Tests Support Around 0.6950 Amid Forecast of Increasing US Durable Goods Orders

NZD/USD – Technical Analysis for Australian Forex Trading.

United States – Core Durable Goods Orders

On Thursday, at GMT 1:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure, which measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Forex traders consider the US core durable goods orders to be the primary gauge of production situation in the economy, as an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future.

Last month, the US core durable goods orders increased by 0.5% and the forecast for this month is currently set at an increase of 0.4%.

New Zealand – Trade Balance

On Thursday, at GMT 11:45 p.m., the Statistics New Zealand will release the national trade balance figure, which measures the difference of the value between net import and net export of the country during the previous month.

Since the export of a country is directly correlated to the demand for its currency, a positive trade balance figure indicates that foreigners had to buy more local (NZD) currency in exchange of their domestic currency. Hence, Australian forex trading investors consider the trade balance to be an important indicator of the health of the New Zealand’s economy.

Last month, the trade balance figure of New Zealand came out at -$18 million, and this month the forecast is currently set a much better figure, at $375 million.

NZD/USD Forecast

NZD/AUD Forecast for Australian forex Trading investors

Since breaking below the uptrend line on March 02, 2017, the NZD/USD remained range bound, and the pair mostly traded between 0.6900 and 0.7065. Earlier this week, the NZD/USD turned bearish and today, it tested the support level around 0.6950.

As the US core durable goods orders figure is expected to increase by 0.4% over the past month, but the New Zealand’s trade balance declined by -$18 million last month, we believe it would set a bearish fundamental outlook for the NZD/USD this week.

Under the circumstances, if the NZD/USD price closes below the support around 0.6950, it would likely go further down to test the 0.6900 level this week. Hence, forex traders should look out for trading opportunities below this major support level around 0.6950.

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Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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