NZD/CAD is testing (and turning lower) from a previous high.
Think the pair’s short-term range will play out in the next trading sessions?
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:
Profits at China’s industrial businesses grew by 2.7% y/y, much slower than September’s 11.9% y/y and October’s 17.2% y/y gains
Japan’s Services Producer Price Index for October: 2.3% y/y (2.1% y/y forecast, 2.0% y/y previous)
In an interview, BOE Gov. Bailey repeated his belief that it’s “too soon” to talk interest rate cuts, and said getting to the 2% inflation target is “hard work”
BOJ Governor Kazuo Ueda said the central bank still can’t say with conviction that inflation will sustainably get to the 2% target
Price Action News
Overlay of JPY vs. Major Currencies Chart by TradingView
With not a lot of economic releases to price in, Asian and early European session traders were able to pay close attention to Japan’s services producer price index.
The report showed a bigger uptick compared to the previous month, which inspired traders to price in higher wages and possibly less pressure on the BOJ to keep its policies accommodative.
It also didn’t hurt that uncertainty ahead of this week’s potential catalysts led market players into safe havens like the yen.
JPY is trading in the green against all of its major counterparts but it’s especially strong against CAD, NZD, and EUR.
Upcoming Potential Catalysts on the Economic Calendar:
U.K. CBI realized sales at 11:00 am GMT
ECB President Lagarde to give a speech at 2:00 pm GMT
U.S. new home sales at 3:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
AUD/CAD 15-min Forex Chart by TradingView
NZD/CAD looks ready to turn lower from a previous high!
We didn’t see a lot of economic releases but China’s slower industrial profits did the AUD and NZD dirty earlier today. NZD/CAD hit intraday bottom at the .8275 mark, though, before enough NZD bulls pushed the pair to the .8305 highs.
As you can see, .8305 is close to Friday’s highs and fits nicely as the top of a short-term range. Stochastic is also in favor of the bears with an overbought signal.
The .8300 psychological level could draw in sellers who are pricing in the Reserve Bank of New Zealand (RBNZ) holding its interest rates steady AND the OPEC+ gang deciding on further production cuts in the next few months.
The mid-range levels may serve as initial targets for those who are shorting the pair but the S1 (.8270) Pivot Point line may also attract profit-takers if there’s enough bearish momentum.
Until we hear from the RBNZ and OPEC+, though, NZD/CAD could take its cues from overall risk sentiment.
Look out for headlines that may affect RBNZ or OPEC+ speculations, global growth concerns, or overall comdoll demand so that you can adjust your trading plans if you’re planning on taking this setup!
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