Crude oil and the correlated Loonie might be in for an eventful week!
Here’s a nearby inflection point I’m watching on NZD/CAD.
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Hurricane Ida hits U.S. oil hubs in Louisiana
- Asian shares chalk up some gains on dovish Fed
- Australia’s company operating profits up 7.1% in Q2
- NZ PM Ardern extends Auckland lockdown for another two weeks
- German preliminary CPI flat vs. projected 0.1% uptick
- Swiss KOF economic barometer down from 130.9 to 113.5
Upcoming Potential Catalysts on the Economic Calendar:
- Canadian current account balance at 12:30 pm GMT
- U.S. pending home sales at 2:00 pm GMT
- New Zealand building consents at 10:45 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: NZD/CAD
This pair has been pacing back and forth inside a range, finding support at the .8700 handle and gearing up for another test of resistance around .8885.
Will the ceiling hold again?Stochastic is suggesting that buyers have been feeling exhausted for a while now, so turning lower would confirm that sellers are taking over.
However, the moving averages aren’t providing any strong directional clues since the pair is rangebound.
If resistance holds, NZD/CAD might make its way back down to the bottom of the range or at least until the middle around .8800.
There’s not much in the way of top-tier releases from both New Zealand and Canada, but it’s worth noting that crude oil has some catalysts on deck.
For one, the OPEC-JMMC is due to meet this week, and they might be ready to discuss adjustments to the output deal. Any recommendation to scale down production might mean some upside for crude oil prices and the correlated Canadian dollar.
Also, weather disturbances like Hurricane Ida are expected to keep oil production along the Gulf Coast in check, possibly bringing bullish vibes for the commodity as well.