New Zealand - retail sales
On Sunday, around 09:45 pm, Statistics New Zealand released the current quarterly retail sales volume compared to the previous quarter, which measures the change in the total value of sales made by the retail sector after adjusting for inflation over the same period.
Forex and binary options traders are interested in looking at the quarterly data on New Zealand's retail sales as the main measure of consumer spending in the country. Thus, it acts as a vital key indicator for the overall economy.
During the last quarter, the value of New Zealand's retail sales increased by 1.6% and this quarter's forecast was at a lower level of growth, at 1.3%. The actual figure showed that the value of retail sales in New Zealand rose by as much as 1.7%, which is much higher compared to what was expected from the binary options market.
Japan - First Gross Domestic Product (GDP)
Later on Sunday, at around 11:50 GMT, the Japanese Cabinet Office released its first quarterly GDP report, which measures changes in the inflation value of all goods and services produced by the Japanese economy during the quarter.
While the final GDP figure is more accurate, the preliminary GDP figure is released earlier. Thus, it creates more effects on the market compared to the final version of GDP. Since GDP is used by the Bank of Japan to measure the country's overall economic productivity, binary options traders are interested in looking at GDP as an important leading indicator of the country's overall economic situation.
In the last quarter, Japan's primary GDP fell by as much as 0.5% and forecasts for this quarter are set for an increase of 0.9%. However, Japan's actual primary GDP came in outside those expectations, indicating a slowdown of 0.6% growth.
Trading recommendations for the New Zealand dollar / Japanese yen
The NZD/JPY has been in a free fall since the beginning of the year. Additionally, a brief bounce occurred during the second week of January, and it practically went down until the beginning of February. However, on February 3rd, the NZD/JPY formed a strong upside outward (BUOB) and the price rose last week and finally closed above the lower sharp trend line.
Earlier today, the NZD/JPY price broke above the resistance level from last week, and it is currently heading to move towards the 61.8% retracement level of the previous downside level, which was 90.22. The 61.8% retracement level is also very close to the 90,50 psychological resistance level. Given the lower than expected Japanese preliminary GDP, the NZD/JPY rate is likely to rise over the next few weeks.
Under these circumstances, it is highly recommended For forex and binary options traders Place CALL orders around the current price level with NZD/JPY expected to remain above 87.87 over the next few days.