AUD/NZD Likely to Test Key Resistance as Job Advertisement in Australia Grows

Australia – ANZ Job Advertisements

On Monday, at GMT 1:30 a.m., Australia and New Zealand Banking Group (ANZ) released its monthly Job Advertisement figure. It measures the changes in the number of advertised jobs in key Australian cities through the major daily newspapers and web portals.

Job advertisements usually lead to hiring new employees. So, 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 decreased by -0.3%. This month it increased by 1.5%, indicating that employers are looking to hire more workers in the coming months.

New Zealand – GDT Price Index

On Tuesday, the Global Dairy Trade will release the GDT price index. It measures the changes in the average price of dairy products sold at auction in New Zealand.

The bulk of New Zealand’s exports to the world market consists of dairy products. Therefore, the GDT price index acts as a leading indicator of the country’s trade balance. This is because the rising price of dairy products ensures that foreign buyers have to purchase it at a higher price. Hence, binary options investors use this data to predict future trade balance, which helps in the valuation of the New Zealand Dollar against other major currencies.

Last period, the GDT price index increased by 1.9% after decreasing by -1.1% in the previous reporting period. If the figure grows again this month, it will likely have a bullish effect on the New Zealand Dollar.

AUD/NZD Forecast

Since forming a pin bar on April 12, 2018, the AUD/NZD remained highly bullish. Consequently, the pair also climbed by around 470 pips over the last two months. However, after reaching near the 1.0940 level, the AUD/NZD found a strong resistance. Currently, it is trading just below the 1.0940 level.

The Australian ANZ Job Advertisements figure increased by 1.5%. On the other hand, the New Zealand’s GDT Price Index decreased in the previous months. Hence, it may not grow by that much this month. We believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes above the resistance near 1.0940, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0940.

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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