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29 August 2024,01:52

Trade Of The Day

New Zealand Kiwi Rose As Business Confidence Soars

29 August 2024, 01:52

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Fundamental Analysis

* Business Boom: The New Zealand Dollar attracts further buying demand after the nation’s business confidence improves significantly in August. According to the ANZ Bank survey, New Zealand’s business confidence jumped in August to the highest level in a decade as forward-looking activity indicators rose strongly. The survey’s headline measure showed a net 50.6% of respondents expected the economy to improve over the year ahead, versus a 27.1% optimism level in the previous poll in July. A net 37.1% of respondents expected their own businesses to grow in the next 12 months, a seven-year high, versus 16.3% last month.

Technical Analysis

* Technical Breakout: NZDUSD was traded higher while currently testing the resistance level 0.62785. MACD which illustrate bullish momentum signal suggest the pair to likely extend its gains after it breaks above the level.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 0.63700. Conversely, a potential reversal is also to be expected and the price could head back towards 0.61920.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will focus on upcoming key U.S. data such as U.S GDP, Initial Jobless Claims and the Fed preferred indicator, Core PCE Price Index which due later this Friday.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and New Zealand data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

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