With U.S. markets closed on a vacation as we speak, I’m pondering New Zealand’s quarterly PPI may be the only real mover of NZD/USD.
Check out this development setup I’m taking a look at.
Before transferring on, ICYMI, I’ve listed the potential financial catalysts that it’s worthwhile to be careful for this week. Check them out earlier than you place your first trades as we speak!
And now for the headlines that rocked the markets within the final buying and selling classes:
Fresh Market Headlines & Economic Data:
U.Ok. home costs keep flat in February vs. earlier 0.9% uptick – Rightmove
Crude oil turns increased once more on Chinese demand forecasts and manufacturing limits
PBOC stored prime mortgage charges unchanged as anticipated
North Korea reportedly fires one other ballistic missile
U.S. and Canadian markets closed for the vacation
Eurozone shopper confidence index at 3:00pm GMT
New Zealand quarterly PPI enter and output at 9:45 pm GMT
Australia’s flash manufacturing and companies PMIs at 10:00 pm GMT
RBA financial coverage assembly minutes at 12:30 am GMT (Feb. 21)
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: NZD/USD
NZD/USD 1-hour Forex Chart by TradingView
This week is off to a quiet begin, as U.S. banks are closed for the Presidents’ Day vacation.
Still, we’d get some volatility on NZD/USD since New Zealand is scheduled to print its quarterly PPI report.
Number crunchers are betting on a slowdown in worth pressures, with the PPI enter determine slated to dip from 0.8% to 0.5% and PPI output determine more likely to fall from 1.6% to 0.4%.
In that case, Kiwi merchants may pare RBNZ charge hike bets now that inflation is stored in examine. In distinction, Fed tightening hopes stay sturdy, following the upside surprises in U.S. knowledge over the previous couple of weeks.
I’m seeing a descending development line connecting the most recent highs on NZD/USD, and it appears like this resistance zone is up for one more take a look at quickly.
This occurs to coincide with the 50% Fibonacci retracement stage, which is just some pips above the .6250 minor psychological resistance.
The next correction might attain the 61.8% Fib that strains up with the 100 SMA dynamic resistance, which is under the 200 SMA to mirror bearish momentum.
In addition, Stochastic is heading south to sign that sellers have the higher hand and may take NZD/USD again all the way down to the swing low near the .6200 mark once more.
Just preserve your eyes peeled for both an upside PPI shock or a robust pickup in risk-taking that may spur a reversal from the selloff!
