Breakout alert! European traders are feeling risk-friendly today.
Will their U.S. counterparts feel the same way? I’m looking at NZD/USD’s breakout for intraday opportunities.
Before moving on, ICYMI, I’ve summarized last week’s market events on my weekly market recap. Be sure to check that out before you place any trades this week!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- UK house prices surge as high demand meets record shortage of homes for sale
- Australia-New Zealand travel bubble has officially opened
- Japan’s exports post largest monthly gain since late 2017
- BusinessNZ: New Zealand service sector moves to expansion
- After a bitcoin crackdown, China now calls it an ‘investment alternative’ in a significant shift in tone
- Asian stocks hit one-month highs, Bitcoin climbs
- Dollar pinned near one-month low, Bitcoin steadies near $57k after weekend drop
Upcoming Potential Catalysts on the Economic Calendar:
- Eurozone current account at 8:00 am GMT
- Canada’s housing starts at 12:15 am GMT
- Canada’s annual budget report during the U.S. session
What to Watch: NZD/USD
Optimism over the major central banks’ easy monetary policies and increased vaccination around the world have dragged the safe-haven dollar lower across the board and boosted high-yielding currencies like the Kiwi.NZD/USD is now trading above its .7175 previous April highs and it’s looking like it’s gunning for the .7230 area of interest.
Before you buy the Kiwi like it’s there’s no tomorrow, though, you should know that Stochastic is already flashing an overbought signal. Not only that, but MarketMilk tells us that NZD/USD has an average volatility of just under 60 pips on Mondays, something that the pair has already hit so far today.
A lack of major economic reports means that traders will once again take cues from risk sentiment.
Unless traders start worrying about tightening from any of the central banks printing their monetary policies this week, or if the dollar regains its bullish momentum, then we’ll likely see more support for NZD/USD. Question is, can the Kiwi sustain its upswing without pullbacks today?