Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
NZ Employment Change
Forecast 0.1%
Previous 1.4%
Pair to trade: NZD/USD
Triggers we need: 0.8 BUY / SELL -0.8
Economical Impact: High
Typical Result: Actual forecast is good for the currency
Occurrence: Released quarterly, about 35 days after the quarter ends
About our Triggers:
If NZ Employment Change comes out at -0.5 or more negative using our trigger of -0.8 NZD/USD should go down by about 35 pips. If it comes out at +0.9 or higher using our trigger +0.8 trigger NZD/USD should go up by about 35 pips
+/- 0.8 deviation is not that much, there is a real risk for a conflict with the unemployment number. I will not be trading spike on this release due to a possible conflict, However I believe that if we get a small conflict, we should still see a decent price action.
Why do we care?
It's a leading indicator of Job creation and is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This data is released extremely late; it's the earliest indication of the employment situation and tends to create market impact.
Method to trade this: Stavro D’Amore Trading Method
Please keep in mind possibility of Unemployment number before entering any of these strategies.
I will NOT recommend spike trading for this release.
If the unemployment rate deviates by +/- 0.2 or more and conflicts with the employment change I will not look to enter this trade.
If all numbers go well I will look at the following strategy, I will look for a 50% retracemeant in the original spike before entering a trade; once entered I will close my whole position as soon as spike is just before original high as NZD pairs tend to have a great reversal effect.
Historical Chart and Data for NZ Employment Change
What is NZ Employment Change?
Measures the change in number of employed people during the previous quater. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labour conditions, makes up a large portion of GDP.
All the best
Stavro D’Amore
Forecast 0.1%
Previous 1.4%
Pair to trade: NZD/USD
Triggers we need: 0.8 BUY / SELL -0.8
Economical Impact: High
Typical Result: Actual forecast is good for the currency
Occurrence: Released quarterly, about 35 days after the quarter ends
About our Triggers:
If NZ Employment Change comes out at -0.5 or more negative using our trigger of -0.8 NZD/USD should go down by about 35 pips. If it comes out at +0.9 or higher using our trigger +0.8 trigger NZD/USD should go up by about 35 pips
+/- 0.8 deviation is not that much, there is a real risk for a conflict with the unemployment number. I will not be trading spike on this release due to a possible conflict, However I believe that if we get a small conflict, we should still see a decent price action.
Why do we care?
It's a leading indicator of Job creation and is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This data is released extremely late; it's the earliest indication of the employment situation and tends to create market impact.
Method to trade this: Stavro D’Amore Trading Method
Please keep in mind possibility of Unemployment number before entering any of these strategies.
I will NOT recommend spike trading for this release.
If the unemployment rate deviates by +/- 0.2 or more and conflicts with the employment change I will not look to enter this trade.
If all numbers go well I will look at the following strategy, I will look for a 50% retracemeant in the original spike before entering a trade; once entered I will close my whole position as soon as spike is just before original high as NZD pairs tend to have a great reversal effect.
Historical Chart and Data for NZ Employment Change
What is NZ Employment Change?
Measures the change in number of employed people during the previous quater. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labour conditions, makes up a large portion of GDP.
All the best
Stavro D’Amore
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