The participation rate in New Zealand dropped to 70.3% in the third quarter, down from 70.5%. This indicates a small change in how engaged the workforce is in the country.

Currency And Commodities Update

Gold saw a slight increase due to worries about a possible US government shutdown. At the same time, the People’s Bank of China set the USD/CNY reference rate at 7.0901, up from 7.0885. The AUD/USD currency pair stayed stable around 0.6450 after China’s PMI data was released. Likewise, EUR/USD remained steady near 1.1500 as traders were cautious about the European Central Bank’s policies. China’s services PMI fell to 52.6 in October, which matched expectations. US President Donald Trump mentioned progress on tariff issues after a meeting with Swiss officials. In the Forex market, GBP/USD dropped significantly, going below 1.3100. Meanwhile, gold fell below $3,850, affected by the US Dollar’s performance.

Cryptocurrency And Financial Sentiment

Ethereum’s price fell below $3,500, partially due to ETF outflows impacting the crypto market. Financial markets may face challenges from upcoming US data and central bank meetings. The US Dollar remains strong, making it tough to bet against. The October 2025 non-farm payrolls came in strong at 190,000. With core inflation around 3.4%, the Federal Reserve is unlikely to signal rate cuts. This “higher for longer” approach is boosting the dollar. The British Pound shows significant weakness, having declined against the dollar over the past weeks. The Bank of England faces challenges, as last quarter’s GDP data shows the economy grew only 0.1%, raising recession fears. This divergence in policies, especially with a hawkish Fed, makes shorting GBP/USD an attractive strategy. Using options to buy puts could limit risk while aiming for further declines. The New Zealand dollar appears vulnerable after the participation rate fell to 70.3%, indicating a cooling labor market that may push the Reserve Bank of New Zealand to act. Similarly, the Australian dollar is under pressure due to China’s slow recovery, with the latest October 2025 manufacturing PMI below 50, signaling contraction. This situation favors bearish positions on both AUD/USD and NZD/USD. For the Euro, we’re seeing a consolidation phase as the European Central Bank remains cautious. While recent Eurozone inflation was 2.9%, just below expectations, the ECB seems reluctant to cut rates at this point. This uncertainty suggests that traders might consider using options strategies like strangles to take advantage of potential volatility breakouts in EUR/USD instead of betting on a specific direction. Gold struggles to gain ground, facing direct pressure from the strong US Dollar and high interest rates. With the 10-year US Treasury yield above 4.5%, holding non-yielding gold is costly. Gold is likely to remain under pressure as long as the market expects the Fed to stay steady. Create your live VT Markets account and start trading now.

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