NZDUSD price extended its increase yesterday drawing a long-body bullish candlestick with a rather long shadow on the top candle. The price reached a new high of 0.60245 on the support of New Zealand jobs data.
Yesterday, the release of Employment Change data showed a value of 0.4%, higher than expected -0.2% with the previous data revision of -0.3%. This change in the number of workers provides an indication of an increase in job creation, which is a leading economic indicator that reflects the majority of the entire economy.
On the other hand, the data released for the Unemployment Rate was 4.6% compared to the expected 4.7% with a revision of the previous data of 4.4%. Even though it is down compared to previous data, it is higher than analyst predictions. The number of unemployed is an important signal of overall economic health that correlates with consumer spending, although it is a lagging economic indicator.
These two economic indicators include high-impact news and yesterday NZDUSD formed a low of 0.50458 and a high of 0.60245 closing at a bullish candle at 0.59923. NZDUSD had fallen on August 5 at a low of 0.58493 but the whipsaw brought the price up to a close by drawing a bearish candlestick with a long wick small body. After that, prices tend to extend their increase.
Today the economic data that investors may pay attention to is Inflation Expectations, the previous data showed 2.33%. The Reserve Bank of New Zealand expects that the inflation target in the future will materialize into real inflation, so this could be related to interest rate policy.
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Yesterday, the release of Employment Change data showed a value of 0.4%, higher than expected -0.2% with the previous data revision of -0.3%. This change in the number of workers provides an indication of an increase in job creation, which is a leading economic indicator that reflects the majority of the entire economy.
On the other hand, the data released for the Unemployment Rate was 4.6% compared to the expected 4.7% with a revision of the previous data of 4.4%. Even though it is down compared to previous data, it is higher than analyst predictions. The number of unemployed is an important signal of overall economic health that correlates with consumer spending, although it is a lagging economic indicator.
These two economic indicators include high-impact news and yesterday NZDUSD formed a low of 0.50458 and a high of 0.60245 closing at a bullish candle at 0.59923. NZDUSD had fallen on August 5 at a low of 0.58493 but the whipsaw brought the price up to a close by drawing a bearish candlestick with a long wick small body. After that, prices tend to extend their increase.
Today the economic data that investors may pay attention to is Inflation Expectations, the previous data showed 2.33%. The Reserve Bank of New Zealand expects that the inflation target in the future will materialize into real inflation, so this could be related to interest rate policy.
View attachment 7252
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