AUD/NZD hits the watchlist as soon as once more because the Kiwi has fairly a couple of catalysts forward to get volatility hopping. Will the bears cease immediately’s bounce or is there extra upside room to run?
Earlier than transferring on, ICYMI, immediately’s Each day U.S. Session Watchlist checked out EUR/NZD ahead of NZ retail sales data, so make sure to examine that out to see if there’s nonetheless a possible play!
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Recent Market Headlines and Financial Information:
President Biden selected Jerome Powell to steer the Fed for a second time period
New Zealand Retail Gross sales: -8.1% within the September quarter, above expectations however under June quarter learn of three.3%
U.S. current house gross sales rose 0.8% in October in response to Nationwide Affiliation of Realtors
“El Salvador plans to create a ‘Bitcoin Metropolis’ and lift $1 billion by way of a ‘Bitcoin Bond’
Upcoming Potential Catalysts on the Economic Calendar
New Zealand Retail Gross sales at 9:45 pm GMT
Australia Manufacturing & Providers PMI at 10:00 pm GMT
RBA Kohler speech at 1:05 am GMT (Nov. 23)
France Manufacturing & Providers PMI at 8:15 am GMT (Nov. 23)
Germany Manufacturing & Providers PMI at 8:30 am GMT (Nov. 23)
Euro space Manufacturing & Providers PMI at 9:00 am GMT (Nov. 23)
U.Ok. Manufacturing & Providers PMI at 9:30 am GMT (Nov. 23)
Financial institution of England Haskel speech at 11:00 am GMT (Nov. 23)
For those who’re not accustomed to the foreign exchange market’s primary buying and selling periods, take a look at our Forex Market Hours device.
What to Watch: AUD/NZD
On the one hour chart of AUD/NZD above, we noticed a strong bounce within the pair throughout immediately’s session, recovering from final week’s bearish strain after RBA Governor Lowe shot down charge hike speculators. As we speak’s transfer was seemingly because of the Kiwi, which was broadly decrease on potential revenue taking forward of this week’s monetary policy statement from the Reserve Bank of New Zealand on Wednesday.
That introduced the market to a big space of curiosity across the 1.0380 – 1.0400 space, which prior to now has been each minor assist space resistance ranges. This space can be the 50% – 61% Fibonacci retracement space of the swing transfer decrease we noticed final week.
With stochastic signaling doubtlessly overbought situations, will this space attract short-term sellers? Or will the momentum carry the pair past the 1.0400 main psychological stage? Nicely, which may be decided by how merchants value within the simply launched New Zealand retail gross sales knowledge and Australian PMI knowledge. Each will not be usually market movers and with each occasions coming in better-than-expected or earlier, it appears to be like just like the fundies received’t be a giant driver within the short-term.
Which means it’s seemingly technical gamers could dominate the pair within the upcoming session, and if we see bearish reversal patterns type on this space, the percentages are fairly good of a short-term transfer decrease, particularly if threat sentiment leans optimistic.
However as of proper now, broad threat sentiment appears to be leaning extra destructive, and if that may push AUD/NZD solidly above 1.0400 and keep there, it’s seemingly momentum gamers may take the pair greater to retest the following swing excessive round 1.0450.