How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
What do analysts expect from the NZD today?
Last week was bullish for the New Zealand dollar. The currency strengthened amid the market optimism surrounding the US-China phase one trade deal. Today we will see the release of GDP growth of New Zealand for the third quarter at 23:45 MT time. The important economic data may excite traders.
Why is it important?
As you may know, the indicator of GDP growth stands for the gross domestic product of a country. It represents the inflation-adjusted value of all goods and services produced by the economy. The central bank uses this indicator to measure the economic health of a country. Wednesday’s release may affect the RBNZ decision, as the bank is assessing its further moves. After surprisingly keeping the interest rates on hold during the November’s meeting, the possibility of a rate cut during the next meeting remained. However, the positive data may change the mind of the regulator.
What are the analysts’ expectations?
Recently, New Zealand banks raised their projections for Q3 economic growth.
ASB raised it from 0.7% to 0.5%, while BNZ increased it from 0.3% to 0.5%, citing a better manufacturing data.
The survey of economists by Reuters also shows the expectation of a rise to 0.6%.
If the actual level of indicator is higher than the forecasts, it will have a positive impact on the New Zealand dollar.
Key levels for NZD/USD
The 50-week SMA combined with the 0.66 level appeared to be too tough for buyers of NZD/USD. On the daily chart, the pair bounced from the 0.66 resistance level and moved down to the 0.6540 support, which lies close to the 200-day SMA.
On H4, bulls are testing the resistance at 0.6574 (50-period SMA). If the NZD is supported today by the positive data, we may expect the breakout of this level and rise towards 0.66. Otherwise, we may see the reversal towards 0.6550. In case of a breakout of this level, bears will target 100-period SMA at 0.6522.
Key levels for NZD/JPY
NZD/JPY has been trading at its July highs. On H4, the price has been trading within an uptrend, which is well supported by the 50-period SMA. The retest of a trendline may be attractive for opening a long position. If bulls push the pair higher, the chance of reaching the 72.2 level will increase. Key levels from the downside will lie at 71.7-71.87.
Similar
USD and GBP Traders Await Big Moves
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
What to Trade on August 29 - September 2?
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
Latest news
What Currency Will Overperform?
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
Investor Positivity May Fade After Powell's Speech and CPI Release
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
What Can Rule the Roost in January 2023?
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
