AUD/NZD is on track to make new monthly lows!
Will today’s market themes drag it down to the 1.1250 zone?
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:
Japan and South Korea’s markets out on bank holidays
Australia AiG September services index 48.0 vs 53.3 in Aug
China’s Caixin services activity falls from 55.0 to 48.3, the first contraction since May
Eurozone Sentix investor confidence worsens from -31.8 to -38.8 in Oct
Oil falls as investors take profit amid China demand concerns
Blasts rock Kyiv after Putin accuses Ukraine of Crimea bridge attack ‘terrorism’
Stocks fall after Ukraine attacks and rate outlook spark flight to safety
BOE launches temporary expanded collateral repo facility
The crypto market remains choppy.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. and Canadian markets out on bank holidays
UK’s BRC retail sales monitor at 11:01 pm GMT
AU Westpac consumer sentiment at 11:30 pm GMT
Japan’s current account at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/NZD
AUD/NZD 1-hour Forex Chart
U.S. and Canada’s markets are out on bank holidays today but that doesn’t mean we won’t see volatility among the major currencies!
AUD/NZD, for example, dropped like a rock earlier today after China’s Caixin services PMI hit contractionary territory for the first time since May.
It didn’t help that traders were already pricing in the conflict escalation between Russia and Ukraine as well as last Friday’s strong (read: rate hike-friendly) U.S. jobs numbers.AUD/NZD, which had already broken a weeks-long trend line support, caught a fresh downswing below the 1-hour chart’s 100 SMA.
The pair is now on track to revisit its October lows near the 1.1250 zone!
Can AUD/NZD bears maintain their momentum?
We won’t see fresh economic data from the U.S. but Australia will print consumer and business sentiment reports in early Asian session trading.
Worse-than-expected numbers can bring more bears to AUD’s yard. It can also remind traders that the Reserve Bank of Australia (RBA) isn’t as keen to aggressively raise its interest rates as the Reserve Bank of New Zealand (RBNZ) is.
Watch how AUD/NZD reacts to a possible retest of 1.1250. If the pair busts through its previous support, then you should get your breakout trading plans ready.
