Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Unemployment Rate for the fourth quarter came in at 3.2%. Economists predicted an Unemployment Rate of 3.4%. Forex traders can compare this to the Unemployment Rate for the third quarter, reported at 3.3%. The Unemployment Change for the fourth quarter increased 0.1%. Economists predicted an increase of 0.3%. Forex traders can compare this to the Unemployment Change for the third quarter, which rose 2.0% quarterly. The Participation Rate for the fourth quarter was reported at 71.1%. Economists predicted a Participation Rate of 71.2%. Forex traders can compare this to the Participation Rate for the third quarter, reported at 71.2%. The Labor Cost Index for the fourth quarter increased 0.7% quarterly and 2.8% annualized. Economists predicted an increase of 0.9% and 2.9%. Forex traders can compare this to the Labor Cost Index for the third quarter, which increased 0.7% quarterly and 2.5% annualized.
The US ADP Employment Change for January is predicted at 207K. Forex traders can compare this to the US ADP Employment Change for December, reported at 807K.
US Crude Oil Inventories for the week ending January 28th are predicted at 1.525M. Traders can compare this to US Crude Oil Inventories for the week ending January 21st, reported at 2.377M. US Gasoline Inventories for the week ending January 28th are predicted at 1.645M and US Distillate Stocks at -1.492M. Forex traders can compare this to US Gasoline Inventories for the week ending January 21st, reported at 1.297M, and US Distillate Stocks, reported at -2.798M.
The forecast for the NZD/USD turned bullish in the short term after this currency pair bounced off support levels. While the Tenkan-sen continues to slide lower, the Kijun-sen has entered a sideways trend, confirming the lack of short-term bearishness. The Ichimoku Kinko Hyo Cloud points to longer-term bearish pressures, with the Senkou Span A and the Senkou Span B sloping lower, pointing to a likely end of any advance. Traders should monitor the CCI after its breakout from extreme oversold territory, and a move above 0 could trigger a final push higher. Can bulls extend the reversal in the NZD/USD until price action can challenge its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/USD remain inside the or breakout above 0.6595 to 0.6670 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6630
- Take Profit Zone: 0.6890 – 0.6960
- Stop Loss Level: 0.6565
Should price action for the NZD/USD breakdown below 0.6595, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6565
- Take Profit Zone: 0.6490 – 0.6510
- Stop Loss Level: 0.6595
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