Partner Center Find a Broker

The upcoming quarterly New Zealand jobs update could be a market mover for the Kiwi, making this consolidation pattern on NZD/USD one to watch for short-term pips!

Before moving on, ICYMI, today’s Daily London Session Watchlist looked at an opportunity forming on EUR/USD ahead of the German Court ruling, so be sure to check that out to see if there is still a potential play!

Equity Markets Bond Yields Commodities & Crypto
DAX: 10681.47 +2.05%
FTSE: 5850.26 +1.68%
S&P 500: 2885.35 +1.50%
DJIA: 24074.75 +1.37%
US 10-yr 0.665% +0.028
Bund 10-YR -0.577% -0.017
UK 10-YR: 0.214% -0.017
JPN 10-YR: -0.019 +0.02
Oil: 24.08 +18.10%
Gold: 1701.30 -0.70%
Bitcoin: 8871 -0.11%
Etherium: 203.71 -1.42%

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar for U.S. & Asia:

  • Fed Bullard speech at 6:00 pm GMT
  • Fed Bostic speech at 6:00 pm GMT
  • API Crude oil inventory at 8:30 pm GMT
  • New Zealand Employment change at 10:45 pm GMT
  • Australia Retail sales at 1:30 am GMT (May 6)

What to Watch: NZD/USD

NZD/USD 1-Hour Forex Chart
NZD/USD 1-Hour Forex Chart

As previously mentioned in the intro above, we’ve got a top tier catalyst coming from New Zealand in the form of the quarterly employment update, which could get the Kiwi moving in the late afternoon U.S. session / very early Asia session.

Expectations are for the unemployment rate to jump from 4.0% to 4.5% in Q1 2020, and total employment could dip by 0.2%.

Updates outside of these expectations could spark a volatile move, making the consolidation pattern on NZD/USD one to watch.

On the one hour chart above of NZD/USD, we can the pair forming a rising wedge pattern after a two-session drop, and with a top tier catalyst on the way, odds are rising of a potential breakout from the consolidation pattern.

If you’re a bull on NZD/USD, watch out for a better-than-expected update on NZ employment and an upside break of consolidation before considering a long position.

The odds of success are pretty good in this scenario, especially if global risk sentiment remains leaning towards positive as economies around the world open back up.

If you’re a bear on NZD/USD, watch out for a weaker-than-expected update on NZ employment and a downside break of consolidation before considering a short position.

This is counter the current risk sentiment environment, so if we see a shift there (e.g., rising geopolitical tensions, accelerated COVID infection/death rates, etc), then a short play makes sense for some quick pips.