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The RBNZ sure did a number on NZD during the Asian session!

Will traders fade the move? Or will the comdoll weaken some more?

I’ll be looking at GBP/NZD for the next couple of hours. But first, here are headlines you’ve missed during the Asian session:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Credit Suisse economic expectations at 8:00 am GMT
  • German IfO business climate at 8:00 am GMT
  • SNB’s quarterly bulletin at 1:00 pm GMT
  • U.S. EIA crude oil inventories at 2:00 pm GMT

What to Watch: GBP/NZD

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

With no major data on tap during the London session, forex traders will likely focus on overall risk sentiment.

They will probably take their cues from yesterday’s better than expected PMIs, rising coronavirus cases in the U.S., easing lockdown measures in the U.K., and updates on the U.S.’ trade relationships with partners like Canada and China.

GBP/NZD, in particular, could get a lot of attention as it approaches the 1.9400 major psychological handle. As you can see, the level lines up with previous support and the 200 SMA on the 1-hour time frame.

If London session traders extend the anti-Kiwi vibes from the Asian session, or if they focus on the U.K. easing its lockdown measures and printing better-than-expected PMIs, then GBP/NZD could maximize its average daily ATR and hit the 1.9450 – 1.9500 previous areas of interest.

But if market players focus on Brexit-related uncertainty, or if they speculate that further monetary policy easing measures in New Zealand are possible but not likely in the near term, then GBP/NZD could drop back down to its daily open price near 1.9270.