Bitcoin Rallies Up, USD Takes Breath
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
NZD: will it see an upsurge?
What
New Zealand’s quarterly employment change and unemployment rate indicators are coming today, at 23:45 MT time. Same as NFP for the US, they are central in reflecting the pace of economic expansion in the country. That’s why these releases affect the NZD, which may be traded with NZD/USD, NZD/JPY, NZD/CHF, and NZD/CAD.
Strategic
Higher employment and lower unemployment rates indicate more workplaces created in the industry and more people successfully obtaining them. Generally, it results from more demand for work within the industry, which in turn comes from a brighter outlook and more expansive plans on behalf of the businessmen and investors. These are affected by macroeconomic factors and reflect the economic status of the country as a whole.
Tactical
Business owners adjust their plans according to the predicted customer demand and other economic factors, internal to the country. These are the people who have first-hand information about how things are going in the industry. Hence, the change in their plans is the first thing to react to favorable or unfavorable internal economic environment.
Cross-market
Better-than-expected job data reflects the better-than-thought business outlook on behalf of the business owners. That, in turn, creates more-than-expected demand for the corresponding currency in expectation of stronger business performance in the future. Then, the market works on it as a self-propelling mechanism, unless and until negative factual performance or pessimistic outlooks are reported later on. Therefore, strong jobs data pushes the currency up, and the weak one drags it down.
Reaction
The last data was provided with reference to the Q3 of 2019 in the labor market. The employment rate was at 4.2%, coming a bit higher than the forecast of 4.1%. The employment change was at 0.2%, undershooting the expected 0.3%. Coming as weaker than thought, this jobs data dragged the NZD down a bit, but the overall reaction of the currency was limited and did not see any major trend change.
Forecast
This time, the forecast is 4.2% for the unemployment rate and 0.2% for the employment change. If the indicator is better than this, the NZD should get stronger against its counterparts. Otherwise, it will drop. The extent of the reaction will be defined by how far away the factual levels will be from those expected by the market. LOG IN
Similar
Key Forex Event: US Inflation Rate
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
What will move the market on October 11-15?
The upcoming CPI and the earnings season are the main events in the focus of traders next week. Check out more!
Latest news
What will move the market on October 18-22?
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
Gold Skyrocketed, USD Dropped. What Drives The Market Today?
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
High-Impactful Event for Forex: US Retail Sales
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Deposit with your local payment systems
