NZD/USD Uptrend Likely to Resume Amid Improving New Zealand Trade Balance

United States – Final GDP

On Tuesday, at GMT 1:30 p.m., the US Bureau of Economic Analysis will release the quarter-over-quarter final GDP, which measures the annualized changes n he value of all goods and services produced by the US economy over the last quarter.

Binary options traders consider the final GDP to be an important fundamental indicator of the US economy because it indicates how the overall economic activity measured up compared to the previous quarter.

Last quarter, the US final GDP increased by 2.1% and the forecast for this quarter is currently set at 1.9%.

New Zealand – Trade Balance

Later, 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, binary options investors 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.

Trade Recommendation for the NZD/USD

NZDUSDDaily

Since September 23, the NZD/USD has remained in a strong uptrend. However, the bullish momentum was capped by the strong resistance around the 0.6850 level several times in the last two months.

Last week, the NZD/USD formed a Doji bar and the NZD/USD price appeared bearish when the price penetrated below the low of the Doji. However, a lack of bearish momentum in the market pushed the price gradually above the important pivot level around 0.6720 over the last day of the week.

As the New Zealand’s trade balance is expected to improve over the last month, the fundamental outlook for the NZD/USD would likely remain bullish this week.

Under the circumstances, it is recommended that traders consider placing a CALL order for the NZD/USD with their binary options brokers once the price penetrates and closes above Friday’s high, which is at 0.6752.

Recommended Broker: BinaryBrokerZ

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and write on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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