We’ve got the ISM services PMI and ADP employment report due, so these leading indicators should cause some volatility for the Greenback.
Do you think this can lead to an NZD/USD bounce?
Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at a potential downside break on the EUR/AUD triangle. Be sure to check that out to see if there is still a potential play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Fed to start unwinding corporate bond holdings from pandemic
- Australian retail sales rose 1.1% as expected in May
- New Zealand ANX commodity prices rose 1.3% in May
- Australian trade surplus widened from 5.57B AUD to 8.08B AUD
- Chinese Caixin services PMI fell from 56.3 to 55.1 vs. 56.3 forecast
- Asian shares retreat ahead of U.S. NFP due later this week
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. Challenger job cuts at 11:30 am GMT
- U.S. ADP non-farm employment change at 12:15 am GMT
- U.S. initial jobless claims at 1:30 pm GMT
- U.S. services PMI at 2:00 pm GMT
- EIA crude oil inventories at 3:00 pm GMT
- BOE Governor Bailey’s speech at 4:00 pm GMT
- FOMC members Quarles and Bostic to give speeches
What to Watch: NZD/USD
This pair has been cruising higher inside an ascending channel on its 1-hour time frame.
Price looks ready for another test of support, but will buyers still defend this level?Technical indicators are giving mixed signals, as the moving averages appear to be making a bearish crossover while Stochastic is indicating oversold conditions.
This could all boil down to the leading jobs indicators coming out of the U.S. today, namely the Challenger job cuts, ADP non-farm employment change, and the ISM services PMI.
Keep in mind that dollar traders are counting on a slight pickup in hiring for May, at least compared to the dismal April jobs figure. However, downside surprises in today’s employment-related data could lead traders to price in weak NFP expectations.
There are no major reports due from New Zealand this week, but it’s worth noting that the RBNZ shifted to a more hawkish stance in last week’s policy decision.
This means that Kiwi bulls might just be waiting to charge at key inflection points!