AUD/NZD Turns Bullish Amid Forecast of Increasing Unemployment in New Zealand

Australia – Retail Sales

On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

Last month, the Australian retail sales value increased by 0.4%. Analysts are expecting that this month, it would likely remain unchanged at 0.0%

New Zealand – Unemployment Rate

On Wednesday, at GMT 9:45 p.m., the Statistics New Zealand will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the New Zealand economy. It is because one of the main goals of the Reserve Bank of New Zealand 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 New Zealand came out at 3.9%. This month, analysts are expecting it to go up and come out at 4.1%.

AUD/NZD Forecast

The AUD/NZD bullish move got rejected near the downtrend line on January 21. Consequently, it formed a small bearish pin bar that pushed the price towards the 1.0450 level over the last few weeks. However, near the 1.0450 level, the AUD/NZD found a strong support. Currently, it is moving toward the resistance near 1.0535 level.

The Australian retail sales will likely remain unchanged at 0.0% over the last month. On the other hand, analysts are expecting New Zealand’s unemployment rate to go up from 3.9% to 4.1%. 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 1.0535, 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 1.0535.

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

LinkedIn Google+ 

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

Leave a Reply