Forex Market: NZD/USD trading forecast for Monday

During Friday’s trading session NZD/USD traded within the range of 0.8754-0.8790 and closed at 0.8778, gaining 0.08% for the day.

Fundamental view

New Zealand

Statistics New Zealand is scheduled to release an official report on the number of issued building permits in May. The report is due out at 22:45 GMT on Sunday.

Building Permits (also known as Building Consents) measure the number of new construction projects approved for implementation in New Zealand. Permits shall be issued immediately after approval of the construction project. They are used as a leading indicator for the entire real estate market, as data is collected every month from all territorial government departments.

In addition, the National Bank of New Zealand will release its (NBNZ) Business Confidence index for June. In May the index came in at 53.5.

The index is based on a monthly survey of 1 500 entities of the national economy. It represents a forecast on the development of the business over the next 12 months. The study is for people from the private sector who want clear information about the development of business confidence, exports of the economy, labor market and many other indicators. The NBNZ business confidence indicator is recognized as the leading factor that determines the development of the economy of New Zealand.

The report is due out 3:00 at GMT on Monday.

United States

The index of pending home sales in the United States probably jumped 1.2% in May from a month ago, when sales rose 0.4%. This indicator shows activity in terms of signing contracts for purchases of existing single-family houses. Actual payments are made one to two months after the contract has been signed. The index was started in 2001 and its base value was set at 100 points. The index of pending sales is built on broad national sample covering about 20% of the transactions of existing home sales.

The National Association of Realtor’s (NAR) will announce the official index value at 14:00 GMT on Monday. A higher-than-projected gain will support greenback’s demand.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/USD manages to breach the first resistance level at 0.8794, it will probably continue up to test 0.8810. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8830.

If NZD/USD manages to breach the first key support at 0.8758, it will probably continue to slide and test 0.8738. With this second key support broken, the movement to the downside will probably continue to 0.8722.