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NZD/USD binary signal - New Zealand Unemployment data - 06 Feb 2018

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Signal details
Entry Price: 
0.7333
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
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The Bureau of Statistics from New Zealand will be releasing the quarterly unemployment numbers later this evening. The data will cover the period ending December 2017. According to the economists polled, New Zealand's unemployment rate is expected to rise to 4.7% in the fourth quarter. This marks a slight increase from 4.6% registered in the third quarter last year.

The quarterly employment change which measures the change in the number of employment people is expected to rise only slightly by 0.4% during the period. This marks a slower pace of gain in the employment change compared to the 2.2% increase registered in the third quarter.

The employment data comes following the recent inflation data. Consumer prices in New Zealand were seen easing in the fourth quarter. Combining a weaker pace of consumer price increase and a potentially subdued employment numbers could potentially give further evidence for the RBNZ to remain on the sidelines.

The Reserve Bank of New Zealand is expected to meeting later this week on Wednesday. No changes are expected from the RBNZ this week and a weaker data on the employment side could potentially see the central bank coming out on the dovish side.

Based on the above, today's binary options signal is NZDUSD. The Kiwi dollar has been rallying in the previous couple of week on the back of a weaker U.S. dollar. However, with the fundamentals pointing to the weaker side, we expect the NZDUSD to give up some of the gains.

Therefore, we are looking to purchase daily PUT options at 0.7333 for a 21:00 GMT expiry time. We expect NZDUSD to retrace to this intraday resistance level before the currency pair is expected to close lower on the day.

binary options signal nzdusd 06 Feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.