Here is the key factor to keep in mind today for New Zealand Dollar trades:
- New Zealand Manufacturing Activity: The New Zealand manufacturing sector remained depressed in the fourth-quarter as the slump in commodities and global economic slowdown took their toll, but it managed to perform better than in the third-quarter which is an encouraging sign for the New Zealand economy. Manufacturing Activity decreased by 0.7% in the fourth-quarter while Manufacturing Activity Volume rose 0.9%. Forex traders can compare this to the third-quarter data which showed a contraction of 1.1% and an increase of 0.5%.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese GDP: The final report on Japanese fourth-quarter GDP offered forex traders a negative surprise as the Japanese economy is in worse shape than previously reported. GDP rose 0.4% in the fourth-quarter and 1.5% annualized. Economists expected an increase of 0.5% and 2.2% which can be compared to the initially reported increase of 0.6% and 2.2%. The Japanese Yen should come under an increase in selling pressure as a result of the disappointment.
- Japanese Current Account Deficit: The Japanese government faced an increase in its current account deficit for January. Today’s report showed a deficit of ¥1,058.1 billion in January. Economists expected a current account deficit of ¥1,179.6 billion which forex traders can compare to the ¥852.8 billion deficit reported in December.
Should price action for the NZDJPY remain inside the 88.50 to 89.00 zone or breakout above it the following trade set-up is recommended:
- Timeframe: H1
- Recommendation: Long Position
- Entry Level: Long Position @ 88.75
- Take Profit Zone: 90.50 – 91.00
- Stop Loss Level: 88.00
Should price action for the NZDJPY breakdown above 88.50 the following trade set-up is recommended:
- Timeframe: H1
- Recommendation: Short Position
- Entry Level: Long Position @ 88.30
- Take Profit Zone: 85.00 – 85.50
- Stop Loss Level: 89.00
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