AUD/NZD Remains Bearish After Closing Below Uptrend Line

Australia – ANZ Job Advertisements

Today, at GMT 12:30 a.m., Australia and New Zealand Banking Group (ANZ) released its monthly Job Advertisement figure, which measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Since job advertisements usually lead to hiring employees, binary options traders consider this data from ANZ to be a leading indicator of the employment trend in the country. The ANZ Job Advertisement figure usually has greater impact on the Australian Dollar when it is released before the Australian government’s official employment data.

Last month, the ANZ Job Advertisement figure declined by 0.1%, and this month it grew by 1%, indicating that employers are looking to hire more workers in the coming months.

New Zealand – Food Price Index

Tomorrow, at 9:45 p.m., the Statistics New Zealand will release the food price index, which measures the changes in the price of food and food services bought by households in the country over the past month.

Binary options investors pay special attention to the food price index because food price tends to be highly volatile in New Zealand and any sudden change can have a noticeable impact on the overall inflation situation in the economy.

Last month, the food price index in New Zealand came out at -0.2%. The food price index has been declining for last several months and if the trend continues, it would likely be a negative figure this month as well.

Trade Recommendation for the AUD/NZD

AUDNZDDaily

The AUD/NZD has remained in an uptrend since January 7, 2016. But, after reaching near the downtrend line in the last week of January, it started a sharp retracement, which pushed the price towards the support level around 1.0650.

Last week, the AUD/NZD price penetrated and closed below the uptrend line it formed during the last bullish move, and found support around the 1.0650 level.

Although the ANZ Job Advertisements figure grew by 1%, the hiring of new employees would take considerable time and it may not get priced into the market till the end of February. Hence, if the AUD/NZD price penetrates and closes below the 1.0650 level, it would certainly attract additional bearish momentum in the market.

Under the circumstances, it would be recommended that traders consider placing a PUT order for the AUD/NZD with their binary options brokers at once the price closes below 1.0650.

Recommended Broker: BinaryTilt

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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