The RBNZ is about to print its coverage resolution!
Will we see a buy-the-rumor, sell-the-news situation on NZD/CAD’s 4-hour chart?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s triangle sample as merchants targeted on geopolitical tensions in Ukraine. Remember to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Information:
Putin acknowledges Ukrainian separatist areas Donetsk and Luhansk as impartial, orders “peacekeeping” operations within the areas
U.S. coordinating with EU, U.Ok., Australia, and different allies earlier than saying sanctions on course key Russian people and entities
New Zealand bank card spending progress slows from 3.1% to 0.2% in December
WTI crude oil hits 7 1/2 -year excessive round $96 per parrel on escalating tensions in Europe
Greenback Index firmed up on geopolitical and inflation dangers, NZD greater forward of RBNZ assembly
International shares decline on Ukraine tensions
Germany’s IfO enterprise local weather at 9:00 am GMT
U.S. flash manufacturing and providers PMIs at 2:45 pm GMT
U.S. CB client sentiment information at 3:00 pm GMT
Australia’s quarterly wage worth index at 12:30 am GMT (Feb 23)
RBNZ’s financial coverage assertion at 1:00 am GMT (Feb 23)
Germany’s GfK client local weather at 7:00 am GMT (Feb 23)
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: NZD/CAD
NZD/CAD 4-hour Foreign exchange Chart
In case you missed it, merchants have been shopping for NZD in opposition to CAD for the reason that begin of the month.
And why not? In its final two conferences, the Reserve Financial institution of New Zealand (RBNZ) had chosen to boost its rates of interest by 25 foundation factors.
Now that unemployment is at an all-time low and inflation is at multi-year highs, markets don’t see the RBNZ sitting on its arms this week.
Will tomorrow’s resolution encourage a buy-the-rumor, sell-the-news scenario for NZD/CAD? The pair has already gone up by about 250 pips since late January and it’s quick approaching a key inflection level.
I’m speaking concerning the .8625 zone! The world has not solely served as help within the second half of 2021, but it surely’s additionally close to the retest of a pattern line resistance that hasn’t been damaged since September 2021.
Escalating tensions within the European area would make it straightforward for merchants to promote high-yielding bets like NZD in opposition to oil-related currencies like CAD. NZD/CAD may discover resistance on the .8550 and .8600 ranges earlier than extending a months-long downtrend.
If RBNZ hints at extra fee hike plans, nevertheless, then NZD/CAD simply may get sufficient help to significantly check the .8625 resistance zone.
Ensure to maintain your eyes peeled to see how NZD/CAD reacts to RBNZ’s resolution!
