Selling NZDUSD / Buying AUDNZD – Forex Trading Tips

Posted On 05 Aug 2015

Today we are looking at selling NZDUSD on a pullback to the daily central pivot around 0.6560, and buying the AUDNZD on a pullback to the daily central pivot around 1.1220 after a weak GDT and Labor data print from New Zealand.

Current Market Sentiment:

Yesterday’s NY session saw Factory Orders from the US come in as expected at 1.8%. Durable Goods were unrevised at 3.4%. Most major banks see annual US GDP at 2.9% for the second quarter. The Dollar Index remained relatively flat.

Thin trade volume due to US and European holidays saw volatility in sterling ahead of the triple-event Thursday. Cable fell over 50 pips within half an hour with no news catalyst, then after a 70+ pip rally off of session lows, fell once again more than 100 pips to new lows for the week.

Aussie remained the outperformer of the day with AUDCHF extending gains on the session, rallying 185 pips on the day (2.5x ADR).

The GDT Price Index fell for the tenth consecutive fortnight, showing a decline of 9.3%. The New Zealand unemployment rate increased to 5.9 percent in the June 2015 quarter, up from 5.8%. Job growth undershot estimates at 0.3% vs the 0.5% analysts expected. The Kiwi remains under pressure.

During Asia we saw mixed PMI data from China. China’s July composite PMI which covers both manufacturing and services posted only fractionally above the neutral 50.0 mark at 50.2, down from 50.6 in June, and pointed to the weakest rate of expansion in 14 months. This contrasted with a further increase in service sector business activity, where the rate of growth accelerated to an 11-month high of 53.8 in July, up from June’s recent low of 51.8. The poor Chinese data helped push the AUD off of it’s NY session highs.

Coming up for the London session we have the Swiss CPI, Spanish Services PMI, and the UK Services PMI. AS usual, watch my weekly Forex news event’s overview here in order to recap those particular events.

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