NZD/JPY bears are in all probability completely happy campers after the RBNZ gave the markets a slight tone of cautiousness almost about future price hikes. With that sentiment nonetheless contemporary on merchants’ minds, the Kiwi could also be open to promoting strain on any bounces. That makes the descending channel in NZD/JPY one to look at forward of financial updates from Japan and New Zealand.
Earlier than transferring on, ICYMI, right this moment’s Each day U.S. Session Watchlist checked out USD/CAD forward of U.S. Core PCE data and the latest FOMC meeting minutes, so remember to test that out to see if there’s nonetheless a possible play!
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Contemporary Market Headlines and Financial Information:
FOMC minutes from the November 2021 coverage assembly present members are keen to boost rates of interest than anticipated if inflation continues to run excessive
U.S. Jobless claims fall to 199Ok, under pre-pandemic ranges
Preliminary information confirmed U.S. GDP slowed to 2.1% within the present
U.S. Core private consumption expenditures (the Federal Reserve’s most well-liked inflation measurement device) rose by 4.1%, the very best price since January 1991
U.S. new residence gross sales in October rose by 0.4% in October to 745Ok
German Ifo Enterprise Local weather Index dips to 96.5 in November vs. 97.7 in October
Upcoming Potential Catalysts on the Economic Calendar
New Zealand Commerce Stability at 9:45 pm GMT
Japan Providers PPI at 11:50 pm GMT
Australia Non-public Capital Expenditure at 12:30 am GMT (Nov. 25)
Financial institution of Korea Curiosity Fee Determination at 1:00 am GMT (Nov. 25)
Japan Main Financial Index at 5:00 am GMT (Nov. 25)
Germany Client Confidence, GDP at 7:00 am GMT (Nov. 25)
Spain Producer Costs at 8:00 am GMT (Nov. 25)
ECB Schnabel speech at 9:00 am GMT (Nov. 25)
If you happen to’re not aware of the foreign exchange market’s fundamental buying and selling periods, take a look at our Forex Market Hours device.
What to Watch: NZD/JPY
On the one hour chart of NZD/JPY above, we’ve bought a reasonably clear descending channel formation with the market now using the underside of the channel decrease. Bearish sentiment bought fairly robust on the Kiwi right this moment after the anticipated price hike from the Reserve Financial institution of New Zealand, seemingly some revenue taking over the occasion and possibly a response to the marginally cautious tone on future price hikes. The unload could now be working out of steam in line with the oversold sign on the stochastic indicator. Is a bounce again to the highest of the channel proper across the nook?
Effectively, we do have financial information from each New Zealand and Japan within the Asia session, with the the previous simply releasing better-than-expected commerce stability information (the New Zealand month-to-month commerce stability was a deficit of -$1.3B vs. -$2.2B earlier). Japan can be giving merchants the newest companies PPI information in a few hours, which is anticipated to indicate 0.9%, inline with the earlier learn.
These aren’t usually market transferring occasions, but when we do see a choose up in volatility and a bounce in NZD/JPY, that would draw the eye of technical merchants if the market makes its strategy to the highest of the falling channel.
In a state of affairs the place we see a technical bounce and no main catalysts from New Zealand or Japan, then technical bears could win out and take again the market on the prime of the channel. We’ll be looking out for bearish reversal patterns there for a possible short-term / swing place, going with the broad development decrease and rhetoric from the RBNZ that future hikes would proceed to be conditional on how the economic system evolves.