Can EUR extend its gains against NZD ahead of New Zealand’s labor data release?
I’m looking at EUR/NZD’s 1-hour chart for opportunities.
Before moving on, ICYMI, yesterday’s watchlist looked at EUR/GBP breaking below a Head and Shoulders pattern after lower-tier reports from the Eurozone missed estimates. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
US ISM manufacturing PMI falls to 55.4 in April vs. 57.6 expected
Canada’s manufacturing PMI slowed down from 58.9 to 56.2 in AprilNZ new housing consents hits new record highs (50,858 units) in March
Japan and China’s markets are out on bank holiday
RBA raises interest rates by 25 basis points to 0.35%
RBA: it’s the “right time” to begin withdrawing pandemic-related support
RBA noted higher wage growth, resilient economy, and inflation picking up “more quickly and to a higher level”
U.S. oil low, seen at $95, without EU ban on Russia or Ukraine ceasefire
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s PPI at 9:00 am GMT
Eurozone’s unemployment rate at 9:00 am GMT
U.S. factory orders at 2:00 pm GMT
RBNZ’s financial stability report at 9:00 pm GMT
AU AIG construction index at 10:30 pm GMT
NZ quarterly employment at 10:45 pm GMT
NZ unemployment rate at 10:45 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/NZD
Aussie bulls made pips rain during the Asian session after the Reserve Bank of Australia (RBA) raised its interest rates and hinted that it’s only just “beginning” to withdraw its pandemic-related measures.
With no other central bank event in the next 24 hours, outside of EUR/NZD pivot points, the focus may turn to lower-tier reports and overall risk sentiment.Eurozone’s PPI and unemployment rate, for example, could highlight growth and inflation concerns in the region.
Ditto for New Zealand’s quarterly labor data numbers, which are expected to show steady employment gains and a slightly lower unemployment rate.
Lower growth prospects in the Eurozone could lead to 1.6350 holding as resistance for another day. As you can see, the pair tried (and failed) to break above the ascending triangle resistance at least twice in the last two weeks.
Meanwhile, positive headlines or improved risk sentiment in the Eurozone could bust EUR/NZD from its triangle resistance.
Just make sure to confirm a breakout so you don’t get stuck trading a fakeout!