New Zealand – GDT Price Index
On Tuesday, at GMT 3:09 p.m., the Global Dairy Trade released the GDT price index. It measures the changes in the average price of dairy products sold at an auction in New Zealand.
The bulk of New Zealand’s exports to the world market consists of dairy products. The rising price of dairy products ensures that foreign buyers have to purchase them at a higher price. The GDT price index acts as a leading indicator of the country’s trade balance. Hence, binary options traders use this data to predict future trade balance. As it helps in the valuation of the New Zealand Dollar against other major currencies.
Last period, the GDT price index increased by 3.0% This period, it increased way beyond any expectations, by 15.0%.
Australia – Gross Domestic Product (GDP)
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter GDP. It measures the changes in the inflation-adjusted value of all products and service made in the country over the past quarter.
The GDP measures the overall productivity in the economy. It acts as a leading indicator of the economic growth in the country. Hence, binary options investors consider Australia’s GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, Australian GDP came out at 3.3% growth, This quarter, analysts are expecting it to grow by 2.5%.
AUD/NZD Forecast
The AUD/NZD broke above the downtrend line on the first week of January 2021. Since then, it has mostly remained range-bound over the last two months. During this time, it traded between the support around 1.0550 and the resistance near 1.0850. Meanwhile, the 1.0750 level acted as a pivot zone for the pair. Earlier today, the AUD/NZD tested this pivot zone near 1.0750. But, so far, it is trading just below this level.
The Australian GDP will likely grow by 2.5%, much lower compared to the last quarter. By contrast, New Zealand’s GDT Price Index increased by 15% over the last period. We believe it would set a bearish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD remains below the resistance near 1.0750, it would likely attract additional bearish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities below this major resistance level around 1.07500.
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