Welcome to a brand spankin’ new trading month! Here are catalysts to watch if you’re planning on trading the New Zealand dollar.
Building permits (Mar 9:45 pm GMT)
- Building consents popped up by 9.9% in December after an 8.4% decline in November
- NZD didn’t react much to the report as much of the jump came from the Department of Corrections’ new investments for prisons
- Watch out for a potential pullback from December’s strong jump
Data releases from Australia and China
- Australia will see tons of data releases including its quarterly GDP, trade balance, retail sales, and RBA’s policy decision
- China will also print its Caixin manufacturing PMIs for January – the first readings since the Coronavirus outbreak
Overall risk sentiment
- Updates on new Coronavirus cases and their impact on global economic activity will continue to affect the demand for high-yielding currencies like NZD
- It’s also U.S. NFP week, which could direct focus on USD’s overall trends and retracements
- Start-of-month top-tier data releases can also inspire volatility among NZD’s major pairs
- RSI believes NZD is “oversold” against EUR, CHF, JPY, and USD on the daily time frame
- NZD/CAD, NZD/CHF, NZD/JPY, and NZD/USD are all trading below their short AND long-term EMAs on the daily time frame
- EUR/NZD and GBP/NZD are both trading above their short and long-term EMAs
- AUD/NZD is trading below its 200 EMA but above its shorter-term EMAs. Watch out for retracement or reversal opportunities
Missed last week’s price action? Read NZD’s price recap for February 24 – 28!
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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