New Zealand – Trade Balance
On Tuesday, at GMT 9:45 p.m., the Statistics New Zealand will release the national trade balance figure, which measures the difference of the value between net import and net export of the country during the previous month.
Since the export of a country is directly correlated to the demand for its currency, a positive trade balance figure indicates that foreigners had to buy more local (NZD) currency in exchange of their domestic currency. Hence, economists and binary options traders consider the trade balance to be an important indicator of the health of the New Zealand’s economy.
Last month, the trade balance figure of New Zealand came out at -$963 million, and this month the forecast is set a much better figure, at -$812 million.
Australia – CB Leading Index
On Wednesday, at GMT 11:00 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.
Since the CB leading index aggregates some of the other indicator data, binary options investors consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.
In November, the CB leading index declined by 0.1% and it seems to be the prevailing trend for the last few months. If the index declines once again this month, it may have a bearish impact on the valuation of the Australian Dollar against other major currencies.
Trade Recommendation for the AUD/NZD
After breaking below the last uptrend line on November 26 and closing below the major support level around 1.0920 on December 4, the AUD/NZD remained bearish for the last two weeks and formed a downtrend line in the process.
However, last week, the pair found adequate support around 1.0580, and formed a bullish pin bar. Although the AUD/NZD price has not penetrated above the high of this bullish pin bar, it suggests that the pair is likely to start a retracement move towards the downtrend line this week.
Given that the volatility of the binary options market will remain low due to the Christmas this week, we may not see any reversal of the prevailing downtrend this week. So, binary options traders should only consider placing a CALL order once the AUD/NZD price penetrates and closes above the downtrend line.
Under the circumstances, it would be recommended that traders consider placing a CALL order for the AUD/NZD with their binary options brokers once the price closes above the1.0700 level.[featured feattitle=’Recommended Broker: HighLow.net’ site=’HighLow’ ] HighLow.net is a popular Australian binary options broker regulated by ASIC. Check the HighLow Review [/featured]
About our Forex and Binary Options Analyst: Asif Imtiaz
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