- 1 NZD/USD – Technical Analysis for Australian Forex Trading & CFDs.
NZD/USD – Technical Analysis for Australian Forex Trading & CFDs.
United States – ISM Non-Manufacturing PMI
Today, at GMT 3:00 p.m., the US based Institute for Supply Management (ISM) released its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.
Australian Forex investors consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.
Last month, the ISM’s PMI figure came out at 57.5 and the forecast for this month was set at a slightly lower figure, at 57.1. However, the actual figure came even lower than what the market was expecting, at 57.1.
New Zealand – GDT Price Index
Tomorrow, the Global Dairy Trade will release the GDT price index, which measures the changes in the average price of dairy products sold at auction in New Zealand.
Since the bulk of New Zealand’s exports to the world market consists of dairy products, the GDT price index acts as a leading indicator of the country’s trade balance because the rising price of dairy products ensures that foreign buyers have to purchase it at a higher price. Therefore, the Forex traders use this data to predict future trade balance, which helps in the valuation of the New Zealand Dollar against other major currencies.
Last month, the GDT price index came out at a 3.2% increase. Over the last few months, the GDT Price Index has been steadily increasing. If this trend continues, we believe the index would come out with a positive figure this week as well.
Over the last two weeks, the NZD/USD remained very bullish and climbed up by around 330 pips. However, after reaching near the 0.7150 level, the NZD/USD found strong resistance last week, which has been holding the price from climbing further up. As a result, today, the NZD/USD was once again got rejected around the 0.7150 level.
As the ISM Non-Manufacturing PMI figure declined more than what the market was expecting, and the New Zealand GDT Price Index increased, we believe it would likely set a bullish fundamental outlook for the NZD/USD this week. Therefore, if the NZD/USD price penetrates and closes above the 0.7150 level, it would likely find additional bullish momentum in the market.
Hence, Australian Forex traders should look out for trading opportunities above this major resistance level around 0.7150 level.
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