AUD/NZD – Technical Analysis for Binary Options
New Zealand – GDT Price Index
Tomorrow, the Global Dairy Trade will release the GDT price index, which measures the changes in the average price of dairy products sold at auction in New Zealand.
Since the bulk of New Zealand’s exports to the world market consists of dairy products, the GDT price index acts as a leading indicator of the country’s trade balance because the rising price of dairy products ensures that foreign buyers have to purchase it at a higher price. Therefore, the binary options traders use this data to predict future trade balance, which helps in the valuation of the New Zealand Dollar against other major currencies.
Last period, the GDT price index decreased by -0.4% after decreasing by -0.8% in the previous reporting period. If the trend continues, we would likely see the index go down once more this week.
Australia – CB Leading Index
On Thursday, at GMT 2:00 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.
Last month, the CB leading index increased by 0.3% and this month the forecast is that it will increase by an additional 0.4%.
Since forming a bearish pin bar on March 16, the AUD/NZD has remained in a strong downtrend that pushed the price by around 650 pips over the last four months. However, last week, the AUD/NZD broke above the downtrend line and retraced back to the 50% Fibonacci retracement level of the last upward swing, which is near the pivot zone around 1.0670.
The Australian CB leading index is expected to increase by an additional 0.4% over the last month. On the other hand, the New Zealand GDT price index has been gradually declining over the last few months. If the GDT price index continue the trend, it would likely set a bullish fundamental outlook for the AUD/NZD this week. Under the circumstances, if the AUD/NZD breaks above the resistance near 1.0670, it would likely to attract additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0670.
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