Our free forex signals service today looks at the NZD/USD and we have the entry, stop and take profits levels for you.
China’s Industrial Production and Retail Sales data for July were released early Monday. This led to a decline in New Zealand Dollar/USD around 0.7035, down 0.09% on a day.
China’s retail sales contracted to 8.5% YoY, compared with expectations of 11.5% and previous readings of 12.1%. Furthermore, Industrial Production also declined to 6.4% yearly in July, underperforming market expectations and previous readings of 8.3%.
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On Friday, a tough set of data hammered the US yield and the US dollar, supporting commodities and proxy currencies such as the AUD, CAD, and NZD.
Consumer sentiment in the US dropped sharply in early August to its lowest level in over a decade.
As the largest drop in the survey’s history, this decline was the sixth-largest of the past 50 years, with the dollar index DXY declining 0.4% to 92.523, its lowest level since August 6.
As traders await the RBNZ’s interest rate decision this week, the NZD/USD pair is moving towards recent highs.
Analysts at ANZ Bank warned that if the RBNZ hikes interest rates this week, markets will likely be volatile. The rate hike expectation seems to be split 80/20 between a 25bp hike and a 50bp increase.
Other than downward sloping RSI and the momentum line, NZD/USD also sold because of the downbeat numbers from the key customer.
Despite the current weakness, the 200-SMA level of 0.6995 will fight back any further downside. The ascending support line from July 28 may be retested around the 0.7000 threshold.
NZD/USD free forex signals
TRADING OPINION
Instrument: NZD/USD
Order Type: BUY STOP
Entry price: 0.7068
Stop Loss: 0.6992
TP1: 0.7206
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.8
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Saqib Iqbal
