There aren’t a lot of top-tier reports on tap, so price action will likely take cues from risk sentiment.
Think NZD/CHF will extend its weeks-long uptrend today?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
AU Q1 2022 business confidence, conditions dropped 5 points to +14 and +9 respectively
BOJ makes rare 2nd offer to buy unlimited bonds as yields test policy limits
China’s Sinopec pauses Russia projects, Beijing wary of sanctions -sources
U.S. Treasury 5-to-30 year yield curve inverts for the first time since 2006
Shanghai lockdown hurts oil, bonds and yen take a beating
Upcoming Potential Catalysts on the Forex Economic Calendar:
BOE Gov. Bailey to talk macroeconomics and financial stability at 11:00 am GMT
Japan’s unemployment rate at 11:30 pm GMT
BOJ’s summary of opinions at 11:50 pm GMT
AU retail sales at 12:30 am GMT (Mar. 29)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: NZD/CHF
There were not a lot of data releases during the Asian session but traders saw increased volatility thanks to the Bank of Japan (BOJ) unexpectedly offering to buy unlimited 10-year bonds TWICE in one day to combat rising yields. Talk about going all in!The start-of-week risk-taking and JPY weakness that pushed higher-yielding comdolls higher pushed NZD/CHF above the .6500 resistance at first, but news of Shanghai’s lockdown and the lack of progress in Ukraine’s peace talks soon tempered market gains.
NZD/CHF is now trading just under the .6500 mark, which lines up with last week’s highs and is a hair’s breadth away from the 100 SMA and trend line support on the 1-hour time frame.
Day and swing traders can wait for opportunities to enter NZD/CHF’s established uptrend. The 100 SMA is a good spot to jump in but you can also eye the trend line support if we see enough bearish headlines today.
If the long wick above .6500 is as “bearish” as traders are willing to be today, then we could see NZD/CHF comfortably trade above .6500 again and make new monthly highs in the next trading sessions.
There are no major data releases scheduled in the next few hours, so keep your eyes glued to the tube for updates on USD, JPY, or overall risk-taking that can affect NZD/CHF’s short-term trend.