Daily Forex Briefing, Feb 6 – Good Day to Trade the NZD/USD & AUD/USD - Forex News by FX Leaders

Daily Forex Briefing, Feb 6 – Good Day to Trade the NZD/USD & AUD/USD

Posted Wednesday, February 6, 2019 by
Arslan Butt • 2 min read
  • Australian central bank chief Philip Lowe turned to a neutral policy outlook as he recognized heightened economic risks at home and abroad.
  • The Australian dollar slipped dramatically more than 80 pips, as Philip Lowe turned to a neutral policy outlook.
  • The US dollar is getting slightly stronger against its peers in response to US President Donald Trump’s State of the Union address.
  • New Zealand’s labor market figures remain in the highlights today.
  • Check out quick trade ideas on AUD/USD and NZD/USD.

 

Key Economic Events Today

NZD – Employment Change & Unemployment Rate
Fellas, it might be unusual for some of you that New Zealand publishes its employment report only once per quarter. Which is why New Zealand’s labor market report remains in the highlights.

Today at 21:45 (GMT), the Statistics New Zealand is due to release unemployment rate and employment change. Unlike the third quarter’s employment report, the fourth quarter figures are forecast very negatively.

  • Employment change is expected to drop from 1.1% to 0.3%
  • The unemployment rate is expected to rise from 3.9% to 4.1%

Thus, the New Zealand dollar is likely to continue trading with a bearish sentiment.

NZD/USD – Collapse Ahead of Employment Report

The New Zealand dollar fell sharply against the US dollar to trade at 0.6867, giving up -0.36% this morning. Apparently, the market is trading NZD/USD with bearish sentiment, pricing in the expectations of a weaker labor market report.

The technical side is a bit scary for bulls as the NZD/USD pair has violated the bullish channel in the 4- hour timeframe. The channel was supporting the pair around $0.6885. The closing of 4 hourly candles outside the bullish channel will confirm whether it’s a breakout or merely a fakeout.

Support Resistance
0.6884 0.6905
0.6873 0.6916
0.6852 0.6938
Key Trading Level: 0.6895

NZD/USD – Trade Plan

Consider staying bearish below $0.6885 with a stop loss above $0.6915 and take profit at $0.6850 and $0.6825 today.

AUD/USD – Aussie Slipped 90 Pips, What’s Next?

During the Asian session, the Australian central bank chief Philip Lowe turned to a neutral policy viewpoint as he recognized heightened economic risks at home and abroad, pushing the Aussie down by 1.14%.

It’s an ascending triangle breach which added further sell-off in the Aussie. On the 2-hour chart, the ascending triangle was providing strong support at around $0.7230. The AUD/USD has shown sharp bearish moves to trade around $0.7150, right above a double bottom support area. Next support prevails around $0.7120.

Support Resistance
0.7145 0.7154
0.714 0.7159
0.7131 0.7169
Key Trading Level: 0.715

AUD/USD – Trade Plan

The idea is to stay bullish above $0.7100 until $0.7170. While selling is preferred below $0.7195 today.

Good luck!

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