With not a lot of potential catalysts on the docket, I’m setting my sights on the U.S. dollar possibly extending its gains against its major counterparts.
Will NZD/USD make new 2021 lows today? Or will last week’s lows hold as support?
Before we talk setups, check out the top headlines in the last couple of hours:
- Japan Eco Watchers current condition, outlook rises
- Japan’s bank deposits rise at record pace in Feb as consumers save, not spend
- Swiss jobless rate increases in February
- German industrial production unexpectedly falls
- Fed looking at new set of labor market indicators
- Brent hops past $70 for first time since pandemic began after Saudi attack
- Dollar stands tall as U.S. yields resume climb
Upcoming Potential Catalysts on the Economic Calendar:
- BOE Gov Bailey to give a speech at 10:00 am GMT
- U.S. final wholesale inventories at 3:00 pm GMT
What to Watch: NZD/USD
NZD/USD is flirting with the .7100 area that has served as last week’s low. And with Stochastic nearly oversold, will the Kiwi’s relatively low levels attract some bulls?
Maybe not. There are not a lot of top-tier reports out for release so, unless we see a fresh catalyst, the rising U.S. Treasury yields headlines could continue to dominate the markets and push USD higher across the board.If we do see fresh positive catalysts, however, then maybe risk-takers would take a second look at high-yielding bets like the Kiwi and push NZD/USD higher.
Keep an eye out for updates on the U.S. stimmy bill, as well as global reopening headlines that could inspire overall risk-taking.
