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High-yielding currencies took more hits against the Greenback during today’s Asian session trading.

Will today’s releases turn the tides for NZD/USD?

If you’ve missed the last couple of hours of trading, then here’s a list of the top headlines from the late U.S. and early Asian sessions:

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

Upcoming Potential Catalysts on the Economic Calendar:

  • SNB’s policy decision at 7:30 am GMT
  • ECB’s economic bulletin at 8:00 am GMT
  • Germany’s IfO business climate at 8:00 am GMT
  • U.S. initial jobless claims at 12:30 pm GMT
  • BOE’s Bailey to give a speech at 2:00 pm GMT

What to Watch: NZD/USD

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

The Swiss National Bank (SNB) will be under the spotlight today but market analysts aren’t really expecting any bombshells from the central bank.

With no other major data scheduled, it’s likely that the majors will dance to the tune of market risk sentiment for another day.

I’m keeping my eye on NZD/USD, which has reached a key range support and is sporting an oversold Stochastic signal on the 4-hour time frame.

The Kiwi’s bearish momentum seems to be losing steam and I think that makes it a good candidate for a reversal in case we see a risk-friendly environment in the next trading sessions.

If we see optimistic statements or pledges of more stimulus from both Powell and Mnuchin today, then some Kiwi bulls could come out of their “hi-BEAR-nation” and push the comdoll higher. The .6600 handle is a good target if you consider NZD/USD’s average daily volatility of 66 pips.

If risk aversion continues to drag on the higher-yielding bets, though, then NZD/USD could finally break below its 4-hour range and maybe revisit previous areas of interest near .6500 or .6450.