New Zealand – Gross Domestic Product (GDP)
On Wednesday, the Statistics New Zealand will release the quarter-over-quarter GDP, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
Since GDP measures the overall productivity in the economy, it acts as a leading indicator of the economic growth in the country. Hence, binary options investors consider the New Zealand’s GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, the New Zealand’s GDP came out at 0.2% growth and the forecast for this quarter is set at a 0.6% growth.
Switzerland – Libor Rate
Later in the week, on Thursday, at GMT 7:30 a.m., the Swiss National Bank will release the Libor rate, which measures the London interest rate for 3-month Swiss Franc deposits.
Since the overnight interest rate is the most important factor of a fiat currency’s valuation, binary options traders consider the Swiss Libor rate to be an important fundamental indicator of the Swiss currency.
In June, the SNB kept the Libor rate at -0.75% and the forecast for September is that they would leave it unchanged for the time being.
Trade Recommendation for the NZD/CHF
The NZD/CHF price remained within a tight range for the last two weeks. However, as the quarterly GDP growth in New Zealand is forecasted to come out at 0.6% against 0.2% from last quarter, and the Swiss Libor rate is expected to remain unchanged for the time being, the fundamental outlook for the NZD/CHF would be bullish this week.
It is worth noting that the resistance of the current range is also situated near an important psychological pivot zone, and the NZD/CHF price has bounced from the 161.8% Fibonacci retracement level of the last upward swing few weeks ago. It is now trading with a sideways flag pattern.
If the NZD/CHF moves up and closes above the resistance around 0.6300, it would certainly attract additional bullish momentum in the market, which may even create an uptrend in the short run.
Hence, it would be recommended that binary options traders consider placing a CALL order for the NZD/CHF with their binary options brokers, if the price closes above the 0.6300 level.
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