There are not a lot of top-tier economic reports scheduled for release today, which gives the majors a higher chance to dance to risk sentiment’s tune.
Will today’s themes push NZD/USD higher?
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:
Australia manufacturing PMI slows from 53.5 to 52.8 in October
Australia services PMI contracts from 50.6 to 49.0 in October
Japan Oct factory growth slows to 21-month low, but services pick up – flash PMIChina’s GDP rebounds from 0.4% to 3.9% y/y in Q3
China’s exports grew by 5.7%, the slowest since April while imports inched up by 0.3% (vs. 1.0% expected)
China’s retail sales slowed down from 5.4% to 2.5% (vs. 3.3% expected)
China’s fixed asset investment speeded up from 5.8% to 5.9% (vs. 6.0% expected)
France October flash services PMI 51.3 vs 51.5 expected as worries about inflation linger
Germany’s manufacturing PMI drops from 47.8 to 45.7, services lower from 45.0 to 44.9 in October
Eurozone’s manufacturing PMI contracts further from 48.4 to 46.6 in October
Eurozone services PMI 48.2 vs 48.2 expected in October
UK’s manufacturing PMI slumps from 48 to 45.8, services down from 50.0 to 47.5 in October
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. manufacturing and services PMIs at 1:45 pm GMT
U.S. Treasury Secretary Yellen to participate in a discussion at 3:00 pm GMT
BOJ’s core CPI at 5:00 am GMT (Oct 25)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: NZD/USD
NZD/USD 1-hour Forex Chart
A lot of PMI reports are in and even more dollar bulls are out!
Concerns over high interest rates and global growth have crept back in the markets and pushed USD higher against its major counterparts.
NZD/USD, in particular, has found resistance at .5800 and is now trading closer to the .5700 psychological handle.Let’s see if today’s themes will convince buyers to buy at current levels.
Uncle Sam is scheduled to print PMI reports today and, if PMI releases from other major economies are any clue, then we’ll likely see signs of further slowdown. There may even be talks of “hard” landings and recessions!
Speculations of the Fed possibly taking a chill pill from its aggressive tightening can push “risk” assets like NZD higher.
NZD/USD can bounce from the .5700 handle that already lines up with a mid-channel and 100 SMA support on the 1-hour time frame.
But if markets focus on growth concerns instead, or if today’s risk sentiment winds favor risk aversion, then we could see NZD/USD dip closer to previous support zones like .5650 or .5600.
