New Zealand is about to release its quarterly retail sales report!
Will EUR/NZD resume its selloff if we see an upside surprise?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/USD’s descending triangle support ahead of the U.S. PMI releases. 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:
U.S. flash services PMI fell from 47.3 to 44.1 vs. 49.8 forecast
U.S. flash manufacturing PMI down from 52.2 to 51.3 vs. 51.8 forecastFed official Kashkari: Biggest fear is that inflation will be more persistent
Richmond manufacturing index sank from 0 to -8
Eurozone consumer confidence index improved from -27 to -25
U.S. new home sales slowed from 585K to 511K vs. 574K forecast
API reports larger than expected draw of 5.632M barrels in crude oil inventories
The crypto market remains choppy.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. headline and core durable goods orders at 12:30 pm GMT
U.S. pending home sales at 2:00 pm GMT
U.S. EIA crude oil inventories at 2:30 pm GMT
New Zealand quarterly retail sales 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
This pair recently fell through its short-term double top neckline, confirming that a selloff is in order.
Another chance to hop in this potential trend is materializing, as EUR/NZD appears to be pulling back to the area of interest.
Will more sellers join in soon?The upcoming quarterly retail sales release from New Zealand is hinting at another leg higher for the Kiwi, as analysts are predicting a strong rebound in spending.
After sinking by 0.5% in the previous quarter, headline retail sales likely jumped by 1.7% in Q2 while core retail sales probably accelerated from a flat reading to 1.8% growth.
Stronger than expected data could mean even more upside for the New Zealand dollar since this could give the RBNZ more room to hike interest rates.
As for the euro, keep in mind that the region printed mixed results from its manufacturing and services PMI surveys for August.
Technical indicators are looking bullish so far, as the 100 SMA is still above the 200 SMA while Stochastic is edging higher. Then again, the narrowing gap between the moving averages seems to be hinting at a bearish crossover.
Better wait for the oscillator to reach the overbought area if you’re planning on shorting this one!