Is the Greenback in for another leg higher?
I’m looking at this short-term correction levels on NZD/USD to see if sellers will hop in!
Before moving on, ICYMI, today’s Asia-London session watchlist looked at AUD/USD’s breakdown ahead of the Australian jobs report. Be sure to check that out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- New Zealand economy expanded by 1.6% in Q1 2021 vs. 0.5% forecast
- Australia added 115.2K jobs in May vs. 30.5K consensus
- Australian jobless rate down from 5.5% to 5.1% in May
- ANZ forecasts RBNZ rate hike in February 2022
- New Zealand to allow travelers quarantine-free from Victoria, Australia
- Asian shares took hits on hawkish Fed tilt
Upcoming Potential Catalysts on the Economic Calendar:
- SNB monetary policy statement at 7:30 am GMT
- Eurozone final CPI readings at 9:00 am GMT
What to Watch: NZD/USD
The Greenback staged a sharp rally across the board on the heels of the FOMC statement, but it looks like corrections have been taking place.
In particular, NZD/USD had a pretty strong bounce since the New Zealand economy just printed a stellar GDP reading for the first quarter of the year.But will sellers return at NZD/USD’s Fib retracement levels?
Price is currently testing the 50% level but might be due for a higher pullback to the 61.8% Fib that lines up with a short-term falling trend line. To top it off, it also coincides with an area of interest or former support near the .7100 handle.
If any of these are able to keep gains in check, NZD/USD could slide back to the lows at .7042 or much lower.
There are no major reports from New Zealand for the rest of the week while Uncle Sam has a handful of mid-tier data that could underscore the Fed’s hawkish tilt.