Partner Center Find a Broker

Time to check out NZD/CAD as the pair breaks a major psychological level ahead of top tier events from both New Zealand & Canada.

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11753.65 -0.42%
FTSE: 7114.41 -1.24%
S&P 500: 2908.89 -0.53%
DJIA: 26170.93 -0.12%
US 10-yr 1.593% +0.025
Bund 10-YR -0.647% +0.026
UK 10-YR: 0.508% +0.032
JPN 10-YR: -0.234% +0.007
Oil: 55.15 -0.95%
Gold: 1509.60 -0.40%
Bitcoin: 10063.79 +0.16%
Etherium: 188.16 +1.57%

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • New Zealand retail sales at 11:45 pm at GMT
  • Japan National CPI at 12:30 am GMT (Aug. 23)
  • Canada Retail sales at 1:30 pm GMT (Aug. 23)
  • U.S. New home sales at 3:00 pm GMT (Aug. 23)
  • Jackson Hole Summit all weekend

What to Watch: NZD/CAD

NZD/CAD 1-Hour Forex Chart
NZD/CAD 1-Hour Forex Chart

In a mostly quiet week for currencies ahead of the Jackson Hole Summit, NZD/CAD has been a standout as sellers steadily pushed the pair lower after a few better-than-expected economic updates from Canada and a broadly stronger week for oil. And we just saw the downtrend break a major psychological level (0.8500), creating a somewhat descending triangle breakdown setup on the one hour chart.

The question now is will more sellers jump in? No one knows but we do have top tier economic updates from both New Zealand and Canada in the upcoming session to at the very least keep volatility bid and the odds up that the downtrend could have further to go.

For NZD/CAD bears, a combination of weak NZ retail sales versus strong CA retail sales would likely give the downtrend a boost, making the pair a short-term sell candidate from current levels up to the falling ‘highs’ pattern (roughly below the 0.8550 handle). For the more aggressive traders, going in at market with full position or  scaling up with nibblers to that area makes sense, but if you’re the more conservative type, waiting for a retest of the 0.8500 – 0.8550 area may be more your cup of tea.

For NZD/CAD bulls, it’ll likely take the combo of strong NZ retail sales and weak CA retail sales to get the market going, especially since that isn’t the current expected scenario, and if the market can break above the falling ‘highs’ on that catalyst, that would be the signal to put together a long idea. But remember to keep it short-term because it’s not prudent to have risk on during the Jackson Hole Summit, where anything can happen.