NZD/USD is nearing a key intraday resistance zone forward of Uncle Sam’s GDP launch!
Will we see a breakout at this time?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s post-CPI selloff and seemed for the doable areas to brief. Make sure you try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
CBI’s U.Okay. retail business survey improved from +1 in March to +5 in April although retailers don’t anticipate lasting enchancment.
A surge in plane orders helped push U.S. sturdy items orders 3.2% m/m greater in March however non-defense, new orders dropped greater than anticipated.
U.S. commerce deficit in items narrowed by 8.1% m/m in March as exports surged (+2.9%) and imports declined (-1.0%)
EIA: U.S. crude oil inventories fell by 5.1 million barrels within the week to April 21 vs. a 1.5-million barrel drop anticipated
Germany raised its 2023 progress forecasts from 0.2% to 0.4% on stronger-than-expected manufacturing at first of the yr
Atlanta Federal Reserve’s GDPNow tracker sees U.S. GDP at 1.1% as of April 26 (vs. 2.5% estimates on April 18)
ANZ: New Zealand enterprise confidence is essentially unchanged with 43.8% (from 43.4%) of respondents anticipating the economic system to deteriorate as of April.
In a speech, New Zealand Prime Minister Chris Hipkins dedicated to lowering authorities spending and promised to not introduce new taxes this yr.
Earnings of China’s industrial companies fell 21.4% ytd/y in March. In March alone, industrial earnings fell 19.2% y/y as restoration stays patchy.
Value Motion Information
With not loads of top-tier knowledge releases, Asian merchants took cues from their U.S. counterparts and priced of their considerations over the U.S. banking sector in addition to total progress.
NZD bulls missed the danger aversion memo, although, thanks partially to New Zealand Prime Minister Chris Hipkins saying that the federal government gained’t announce new taxes subsequent yr.
The bullish information helped propel NZD greater throughout the board.
Upcoming Potential Catalysts on the Financial Calendar:
U.S. advance GDP at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
U.S. pending house gross sales at 2:00 pm GMT
Tokyo’s core CPI at 11:30 pm GMT
Japan’s preliminary industrial manufacturing at 11:50 pm GMT
Japan’s retail gross sales at 11:50 pm GMT
Australia’s quarterly PPI at 1:30 am GMT (Apr 28)
BOJ’s financial coverage determination out in the course of the Asian session (Apr 28)
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
The combo of greenback weak spot and information of no new taxes for New Zealand shoppers helped enhance NZD/USD firmly above its R1 Pivot Level stage (.6140) and nearer to the R2 zone (.6160).
Factor is, the Normal Pivot Level‘s R2 traces up with the highest of a descending channel that’s been round since final week.
Are we the very best place to brief NZD/USD for a short-term commerce? Or will at this time’s market occasions push NZD/USD to an upside breakout?
Uncle Sam is printing its first Q1 2023 GDP studying at this time and, phrase round is that we might see weaker numbers in comparison with This fall 2022.
If at this time’s headlines lead to much less hawkish Fed expectations and fewer demand for the U.S. greenback, then NZD/USD might prolong its intraday uptrend and make a play for the .6160 channel resistance.
But when at this time’s themes revolve round world recession considerations and danger aversion, then NZD/USD might return to its weeks-long downtrend.
NZD/USD might drop to the .6140 R1 stage earlier than the patrons step in once more.