Economic Indicators to Watch

On September 17, 2025, New Zealand will release economic data from August. Analysts expect stable performance with no major changes in the economic outlook. Japan will also share important economic figures for the same time period. Experts anticipate that the results will be consistent with previous trends. Australia will announce its latest economic data on the same day. Analysts predict that the data will align closely with past results, showing little variation. While one day’s data may not cause significant changes, the overall picture is crucial for currency and index volatility. Central banks in the region are in a sensitive position, and any unexpected results could alter market expectations for future interest rate decisions. For derivatives traders, this is a good time to prepare for a potential increase in volatility. In New Zealand, the focus is on the second quarter GDP. This data will reveal if aggressive rate hikes by the Reserve Bank of New Zealand have pushed the economy into recession. Following a stagnant first quarter and declining business confidence over the last three months, a negative growth report could fuel expectations for future rate cuts. Traders may look to buy NZD/USD put options to benefit from a possible decline in the Kiwi dollar.

Trade and Employment Data Insights

For Japan, the Merchandise Trade Balance Total is crucial, especially since the Yen is hovering around the 155 level against the dollar, a weakness not seen since early 2020. A larger-than-expected trade deficit would emphasize the burden of high import costs and pressure the Bank of Japan, leading to uncertainty in its policies. This situation makes USD/JPY options straddles attractive, as they profit from significant moves in either direction. Australia’s upcoming employment data is particularly important for the Reserve Bank of Australia’s near-term policy. With the unemployment rate recently increasing to 4.1% as reported in August 2025, a weak jobs report could rule out future rate hikes. Traders are positioning themselves with AUD/USD call options in case of an unexpectedly strong jobs number that might indicate a more aggressive central bank stance. Looking back at uncertain periods for central banks, like late 2023, we noticed that even small data releases could lead to significant market movements during times of complacency. The real opportunity in the upcoming weeks lies not in predicting the direction but in preparing for a breakout from this low-volatility phase. Purchasing options on currency pairs like AUD/JPY or the ASX 200 index could be a cost-effective way to brace for the expected market response. Create your live VT Markets account and start trading now.

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