Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Unemployment Rate for the fourth quarter was reported at 4.9%. Economists predicted an Unemployment Rate of 5.6%. Forex traders can compare this to the Unemployment Rate for the third quarter, reported at 5.3%. The Unemployment Change for the fourth quarter increased by 0.6%. Economists predicted a decrease of 0.8%. Forex traders can compare this to the Unemployment Change for the third quarter, which decreased by 0.8% quarterly. The Participation Rate for the fourth quarter was reported at 70.2%. Economists predicted a Participation Rate of 70.2%. Forex traders can compare this to the Participation Rate for the third quarter, reported at 70.1%. The Labor Cost Index for the fourth quarter increased by 0.5% quarterly and by 1.5% annualized. Economists predicted an increase of 0.5% and 1.5%. Forex traders can compare this to the Labor Cost Index for the third quarter, which increased by 0.4% quarterly and by 1.6% annualized.
The New Zealand ANZ Commodity Price Index for January increase by 3.6% monthly. Forex traders can compare this to the New Zealand ANZ Commodity Price Index for December, which increased by 1.8% monthly.
The Final UK Markit/CIPS Services PMI for January is predicted at 38.8, and the Final UK Markit/CIPS Composite PMI is predicted at 40.6. Forex traders can compare this to the UK Markit/CIPS Services PMI for December, reported at 49.4, and to the UK Markit/CIPS Composite PMI reported at 50.4.
The forecast for the GBP/NZD turned bullish after this morning's New Zealand employment data caused a minor rally in the New Zealand Dollar. Traders should position their portfolios for a reversal in price action amid a favorable long-term outlook for the UK economy. This currency pair moved into the Senkou Span A of its Ichimoku Kinko Hyo Cloud with a flat Kijun-sen and a slightly descending Tenkan-sen. The CCI dropped into extreme oversold territory, and while it has more downside potential, traders should prepare for a quick reversal. Will bulls gather strength and force the GBP/NZD to the upside? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/NZD remain inside the or breakout above the 1.8885 to 1.8950 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8920
- Take Profit Zone: 1.9340 – 1.9440
- Stop Loss Level: 1.8835
Should price action for the GBP/NZD breakdown below 1.8885 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8835
- Take Profit Zone: 1.8625 – 1.8715
- Stop Loss Level: 1.8885
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