New Zealand is extending its lockdown!
This might mean more losses for the Kiwi, as traders push back their RBNZ hike expectations.
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- New Zealand extends lockdown to August 24, 11 new cases reported
- New Zealand credit card spending accelerated from 6.4% to 6.9%
- Japanese national core CPI down 0.2% vs. projected 0.4% drop
- Asian markets in the red as safe-haven demand picks up
- U.K. retail sales slumped 2.5% vs. projected 0.2% uptick
- German producer prices up 1.9% vs. projected 0.8% gain
Upcoming Potential Catalysts on the Economic Calendar:
- Canadian retail sales at 12:30 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: GBP/NZD
Sterling has been on shaky footing ever since the U.K. printed downbeat CPI readings earlier on, but it looks like the Kiwi might be in for another selloff as well.
New Zealand’s government just announced that the nationwide lockdown will be extended by four more days, as more COVID-19 cases had been reported.
Can the uptrend on GBP/NZD stay intact?
For now, MarketMilk’s GBP/NZD trend-following rating is still looking bullish!Technical indicators support this view, as the 100 SMA is above the 200 SMA while Stochastic is heading higher.
More buyers might be ready to jump in around the 38.2% Fib that lines up with the mid-channel area of interest or the 50% level that’s right smack in line with the 100 SMA dynamic support.
A larger pullback could reach the 200 SMA that’s in line with the 61.8% Fib and also near the channel bottom.
More risk-off flows throughout the day could weigh heavily on the higher-yielding Kiwi, so better keep tabs on the headlines!
