AUD/NZD Likely to Test Support Near 1.0670 Amid Forecast of Growing Unemployment in Australia

AUDNZD – Technical Analysis for Australian Binary Options trading

Australia – Unemployment Rate

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

Binary options trading investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.0%. This month, analysts are expecting it to go up slightly and come out at 5.1%.

New Zealand – Business NZ Manufacturing Index

Later, at 9:30 p.m., the Business NZ in New Zealand will release its manufacturing index. It measures the level of a diffusion index by asking survey participants to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories;

The Business NZ manufacturing index is considered by binary options traders to be an important leading indicator of the economic health of New Zealand. It is because it has a large sample size. In addition, businesses are the first to react to changing market conditions. Hence, a drastic change in the sentiment of businesses can signal future economic growth and overall productivity in the country.

Last month, the Business NZ manufacturing index reading came out at 51.7. If the figure comes higher than this, it will likely have a bullish effect on the New Zealand Dollar.

AUD/NZD Forecast

AUD/NZD Technical analysis for binary options trading - November 11

After breaking below the uptrend line on October 15, 2018, the AUD/NZD remained highly bearish. Over the last four weeks, the pair fell by around 240 pips. Currently, it is approaching the key support level near 1.0670.

The Business NZ manufacturing index has been fluctuating close to the 51.0 to 53.0 range for the last couple of months. So, unless it breaks above the range, there might not be ample market impact from this news. On the other hand, analysts are expecting the Australian unemployment rate to go up from 5.0% to 5.1% over the last month. We believe it would set a bearish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes below the support near 1.0670, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options trading brokers should look out for trading opportunities below this major support level around 1.0670.

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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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