New Zealand just came out with a positive jobs report, prompting me to add my second forex position sooner than thought.
Original Trade Idea: Forex Trade Idea: NZD/CAD Long on Pullback
As I mentioned above, New Zealand just released their quarter jobs numbers for the end of 2015, and boy, were they positive! The unemployment rate dropped from an expected 6.1% to 5.3% and employment increased by 0.9% vs. -0.5%…nice job New Zealand! The reaction in the Kiwi was positive as the news is likely to take forex traders off the idea that the RBNZ will cut rates–at least for now.
With the 50% Fibonacci level and .9100 psychological handle holding well, I decided to add my second quarter position by manually going long at .9160. With my stop still at .8850, this puts me at a full 0.50% risk and shifts my R:R potential at my initial target (.9600) to right around 1:1. But remember, I am ultimately going for parity (1.0000), which would be a total 2:1 return-on-risk. And with oil still in crash mode, combined with New Zealand pumping out great jobs numbers, I’m comfortable holding this position for now.
And looking ahead on the forex calendar, there aren’t many economic news reports that would affect bias, with exception to the Canadian jobs data this Friday. That could be a market mover, but with forecasts of weaker numbers than previous, the odds are slightly in my favor that it’ll push the pair higher.
It’s wait-and-see time for now, and if the story changes or if I find a way to maximize my gains while keeping risk low, I’ll be quick to adjust my position. Stay tuned by following me on Twitter and Facebook!
What do you think about my trade adjustment or about the Kiwi or Loonie? Please let me know by leaving your thoughts down below in the comment section. Thanks for checking out my forex blog and good luck!