by SignalFactory · February 5, 2020 | 06:53:34 UTC
NZD/USD
remains mildly positive near 0.6500 after New Zealand’s key employment data
release during the early Wednesday morning in Asia.
New
Zealand’s fourth quarter (Q4) employment data suggests the headline
Unemployment Rate declining to 4.0% from 4.2% expected and prior whereas
Employment Change slipped below 0.3% forecast to 0.0%. Further details suggest
that the Labour Cost Index matched 2.4% market consensus on YoY while rising
beyond 0.5% expectations to 0.6% on QoQ. Even so, the Participation Rate
softened to 70.1% compared to 70.4 expected and prior.
In
a reaction to the data, the Kiwi pair initially popped to a four-day high of 0.6501
but pulled back to 0.6487 after few minutes.
The
pair benefited from the RBA’s surprise optimism on Tuesday. In doing so, it
paid less attention to the broad US dollar strength and upbeat US data. The
reason could also be attributed to the broad risk recovery that pushed the US
10-year treasury yields up by eight basis points (bps) to 1.6%.
Late
on Tuesday, New Zealand’s GDT Price Index slipped below 0.9% market forecasts
to -4.7% with the prices of Whole Milk Powder (WMP) down 6.2%. On this, analysts
at Australia and New Zealand Banking Group (ANZ) said, “The movement was
largely aligned with futures expectations and certainly not as large as some
had feared. Prior to the event, it was feared demand from Chinese buyers may
have been muted at this event, but this result shows there was still plenty of
buying interest. As expected, the later delivery contracts performed better
than the nearby contracts for WMP but the difference wasn’t particularly
pronounced.”
Looking
forward, traders will pay close attention to the speech by the RBA’s Governor
Philip Lowe as well as China’s Caixin Manufacturing PMI for the immediate
direction. While the RBA’s Lowe might reiterate the central bank’s optimism, as
conveyed the day before, Chinese activity gauge is also likely to improve to
52.6 from 52.5. Following that, the US economic calendar will also be worth
observing as it carries the ADP Employment Change, Trade Balance and ISM
Non-Manufacturing PMI data.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.
