Tag Archives: NZD/USD

US Dollar News, Impact on Currency Traders

In this article we will examine the various US Dollar news drivers, and how these economic news announcements impact currency traders on a day to day basis. We will also discuss several techniques for profitably trading these US Dollar news drivers.

There are various economic news events that drive movement on the US Dollar against other currencies. Currency traders watch these news drivers, looking for opportunities to buy or sell the major currency pairs for short term profits, swing trades, or longer term trend trading. See the example below of the world economic news calendar showing some scheduled US Dollar news releases. Some examples of the US Dollar news drivers include Purchasing Managers Index, Unemployment Claims, Crude Oil Supplies,  Non Farm Payrolls, and many others.

US Dollar News

US Dollar News

Volatility and price movement in the forex market can be expected after most of the scheduled US Dollar news announcements. Some US Dollar news announcements like the Federal Funds Rate, Non Farm payrolls or the FOMC Statement can provide substantial volatility and price movement. Volatile US Dollar news announcements occur between 25 and 30 times per month, not to mention all of the volatile news announcements from the other seven currencies we trade. There are plenty of times throughout the month when traders should be watching the market around these US Dollar news announcements. The top 7 major currency pairs that can be traded that are influenced by US Dollar news include the USD/JPY, AUD/USD, NZD/USD, USD/CAD, EUR/USD, USD/CHF, and GBP/USD.

Example US Dollar News Announcement:

On Friday March 6, 2015, the non farm payrolls US Dollar news was announced, like it always is on the first Friday of every month. Non farm payrolls is a monthly statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics. Total non farm payrolls rose by 295,000 jobs for the prior month in February, shattering expectations for 235,000, resulting in the US Dollar strengthening. The employment situation report indicated that the February unemployment rate had fallen to 5.5%, down from January’s 5.7%.

How The US Dollar News Impacted Traders

After the non farm payrolls news driver the US Dollar (USD) strengthened on all pairs. Traders could have profited from the price movements that happened after the non farm payrolls news drivers, if they have access to real time professional tools. Check out the live indicator below, this is called The Forex Heatmap®. The heatmap can tell you in real time what pair to trade, and in which direction. It works for 28 pairs, including all 7 of the US Dollar pairs. After the NFP news the heatmap  indicated USD strength in real time. The arrow system pointed traders to the USD/CHF for a buy and the NZD/USD for a sell.

US Dollar News Trading Tools

US Dollar News, Post Non-Farm Payrolls USD Strength

The readings on the heatmap tell you how far these pairs moved. A 1.6% movement on the NZD/USD  is about 115 pips of movement, and a 1.12% movement on the USD/CHF is about 110 pips. The entire group of USD pairs moved hundreds of pips total.

From the standpoint of the trends of the market, the NZD/USD drop was in the direction of the long term downtrend on this pair. This pair should continue down to the 0.7225 support level and likely continue lower. So any sell trade on this pair would have resulted in an intraday profit, but also ongoing pip potential in the direction of the trend. Traders can use the heatmap to make informed buy or sell decisions on a day to day basis for trades in the direction of the trend, or possibly short term trades (day trades) against the trend. We have a great article that discusses trading non farm payrolls in more detail for further reading on this subject.

All US Dollar news events on the world economic news calendar are of great importance to traders. The same thing goes for news events from all of the currencies we trade. Making pips is possible from any of these economic news announcements with our trading tools and live indicators. If the US Dollar has a series of economic news showing that the economy is strong in the USA, and inflation is heating up, the US Dollar could start to strengthen against other currencies as the Federal Reserve starts to raise interest rates. Then, long term trends could form on pairs like the USD/CHF and USD/JPY. As trend followers we find this information to be vital.

Unscheduled US Dollar News

The economic news calendar shown above will give traders access to scheduled US Dollar news drivers, along with news drivers from all 8 currencies that we trade. Sometimes world political events, natural disasters, government of central bank actions, etc., can cause strong movement in the currency markets. We recommend using audible forex price alerts to supplement the scheduled news drivers for better monitoring of the 28 pairs we follow. Finding strong movements and breakouts gets easier with multiple alert systems.

Conclusions – Currency traders like the US Dollar and the major pairs for trading, knowing how strong the dollar is in real time, is extremely valuable to them. Live indicators like the heatmap are strongly favored by traders for increasing trading accuracy on the US Dollar pairs. If traders would analyze all 7 major US Dollar pairs daily,  they could easily determine if the US Dollar is strong or weak with simple trend indicators. This would lead traders to being able to perform a daily US Dollar forecast. We analyze the US Dollar daily at Forexearlywarning, along with 7 other currencies. We also prepare a forecast for the US Dollar every day.

Live Forex Signals USD Weakness 2-12-2015

Today in forex trading The Forex Heatmap® signaled USD (US Dollar) weakness on all pairs. This drove strong price movement for traders. The GBP/USD moved up and broke one resistance level, this pair could continue higher to 1.5550 on the D1 time frame. The NZD/USD is close to breaking one resistance level at 0.7475, past there it would have additional short term potential to the upside. The heatmap provides live trading signals for 28 pairs, including the USD and a total of 8 currencies.

Live Forex Signals USD Weakness 2-12-2015

Live Forex Signals USD Weakness 2-12-2015

Forex Major Pairs USD Weakness 10-15-2014

Today in forex trading the major pairs all moved on US Dollar (USD) weakness. There was also some minor Euro (EUR) and New Zealand Dollar (NZD) strength in the market. This drove price movement on the EUR/USD and NZD/USD as they both moved higher. These two pairs could continue higher for one or two days but they have no trend support from the larger time frames. If you bought either one of these two pairs we would scale out some lots and take profit, scale out additional lots as they continue to rise. The strength and weakness indicators you see below is The Forex Heatmap®, which works for the 7 major pairs listed below plus 21 other exotic pairs for live trading signals.

Forex Major Pairs USD Weakness 10-15-2014

Forex Major Pairs USD Weakness 10-15-2014

GBP/NZD Trading Alert 9-25-2014

Today in forex trading the GBP/NZD  had a trading alert for a buy on The Forex Heatmap®. The New Zealand Dollar (NZD) was weak on all pairs. Since the British Pound (GBP) also had some strength this pushed strong upward movement on the GBP/NZD for traders. The JPY also had some strength today. This caused the NZD/JPY to drop very hard today as the overall drop has pushed this pair into one support level, we would be scaling out lots at this price level. The NZD weakness also pushed the NZD/USD strongly lower, this pair is still trending down and should continue lower from here. The Forex Heatmap®, shown below, gives live trading alerts for 28 currency pairs and can be used for trade entry management and improving your overall profits when trading currencies online.

GBP/NZD Trading Alert 9-25-2014

GBP/NZD Trading Alert 9-25-2014

GBP/NZD Buy Signal 8-5-2014

Today in forex trading The Forex Heatmap® had a buy signal on the GBP/NZD. The New Zealand Dollar (NZD) was mostly weak today in the main forex trading session. There was also consistent British Pound (GBP) strength and some US Dollar (USD) strength.  This drove the intra-day movements and pushed the GBP/NZD higher and the NZD/USD lower for trading opportunities.  The GBP/NZD is approaching one resistance leven, and the NZD/USD is approaching one support level, so traders should be scaling out lots.

GBP/NZD Buy Signal 8-5-2014

GBP/NZD Buy Signal 8-5-2014

Forex Trend Analysis NZD/USD 7-9-2014

The NZD/USD is trending higher on the larger time frames, like the W1 and MN time frame. This pair is just below a record price breakout to the upside with significant possible additional upside potential. Current bid price is 0.8820 and there is almost no resistance past there. Set a buy alert at 0.8830 and start to look for buy signals on this pair using The Forex Heatmap® to confirm your buy entry.  The trend indicators you see below are 5/12 exponential moving averages.

Forex Trend Analysis NZD/USD 7-9-2014

Forex Trend Analysis NZD/USD 7-9-2014

Currency Strength Trading NZD Strength 6-25-2014

Today in currency trading the New Zealand Dollar (NZD) was strong on all pairs. This strength drove movement on several currency pairs on the NZD group. The NZD/USD cycled up and the GBP/NZD cycled down fairly strong. The NZD/USD is trading inside of a range on the smaller time frames and we would exit this trade. The GBP/NZD is also ranging but it should continue down for one more day to the next support level. The currency strength indicators you see below is The Forex Heatmap®, which provides trading signals for 28 currency pairs in real time.

Currency Strength Trading NZD Strength 6-25-2014

Currency Strength Trading NZD Strength 6-25-2014

NZD Currency Strength 6-5-2014

Today on the currency market the NZD  (New Zealand Dollar) was strong on all pairs. This strength drove upward price movement on several pairs like the NZD/USD and NZD/CAD. These pairs could be forming new uptrend on the D1 time frame. Going forward we will look for more NZD strength in the market and continue to follow these trends to the upside. We will look to issue more buy plans on these currency pairs in our next set of trading plans.

NZD Currency Strength 6-5-2014

NZD Currency Strength 6-5-2014

Forex Signal System NZD/USD Buy 5-6-2014

Today in forex trading The Forex Heatmap® signaled a buy on the NZD/USD. The USD (US Dollar) was weak on all pairs and there was some minor NZD (New Zealand Dollar) strength in the market. This pair is trending higher on the largest time frames and has broken most resistance levels, so it is a hold. The NZD/USD could be headed for historical highs.

Forex Signal System NZD/USD Buy 5-6-2014

Forex Signal System NZD/USD Buy 5-6-2014

Live Forex Signals NZD Weakness 4-2-2014

Today in forex trading the NZD weakness drove price movement on all of the pairs in this group.  These price movements originated in the Asian session on most NZD pairs, and the movement continue into the early part of the main session. Pairs like the NZD/USD and NZD/CAD dropped in the main trading session. The live signals you see below are from The Forex Heatmap®, the heatmap has signals for the Asian trading session on the left and for the main trading session on the right for 28 pairs.

Live Forex Signals NZD Weakness 4-2-2014

Live Forex Signals NZD Weakness 4-2-2014