NZD/USD May Turn Bullish This Week If US Consumer Confidence Rises

NZD/USD – Technical Analysis for Forex Trading & CFDs.

New Zealand – ANZ Business Confidence

On Tuesday, at GMT 12:00 a.m., the Australia and New Zealand (ANZ) bank will release its business outlook report that measures the business confidence in the New Zealand in terms of the level of a diffusion index by surveying around 1,500 businesses in the country.

Since the survey includes various manufacturers, builders, retailers, agricultural firms, and service providers; Forex investors consider this index to be a leading indicator of the economic health of the country.

Last month, the ANZ business confidence index remained unchanged at 0.00, a huge drop compared to the reading of 18.3 in August.

United States – CB Consumer Confidence

On Tuesday, at 2:00 p.m., the Conference Board Inc. will publish its Consumer Confidence index that measures the level of a composite index created from data based on a regular monthly household survey.

A higher consumer confidence usually indicates future consumer spending, which can significantly affect the overall economic conditions. Hence, Forex traders consider this kind of survey based index to be a leading indicator.

Last month, the CB Consumer Confidence index came out at 119.8. This month, the forecast is that the index reading will come out slightly higher, at 121.1.

NZD/USD Forecast

Since breaking below the uptrend line on August 7, the USD/CHF has turned bearish and the price went down by around 540 pips in the last two months. However, after reaching near the 0.6820 level last week, it found a strong support and so far, failed to break below this level.

As the US CB consumer confidence index is expected to increase from 119.8 to 121.1, but the New Zealand’s ANZ Business Confidence reading fell to 0.00 last month, we believe it would set a bullish fundamental outlook for the NZD/USD this week. Therefore, if the NZD/USD closes above the next resistance near 0.6920, it would likely attract additional bullish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities above this major resistance level around 0.6920.

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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