An absence of contemporary catalysts acquired merchants worrying about geopolitical tensions from final week.
Will at the moment’s market themes prolong NZD/JPY’s downswing?
Earlier than shifting on, ICYMI, I’ve listed the potential financial catalysts that you want to be careful for this week. Test them out earlier than you place your first trades at the moment!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Information:
New Zealand’s companies index plummets from 49.8 to 45.9 in Jan, the bottom since Oct 2021
Brent crude briefly trades above $96 on Russia-Ukraine tensions
Australia shares rise on vitality, gold enhance
Geopolitical dangers, U.S. inflation weigh on Asian FX as greenback stays buoyant
FOMC member Bullard to present an interview at 4:00 pm GMT
ECB President Lagarde to testify earlier than the European Parliament at 4:15 am GMT
New Zealand customer arrivals at 9:45 pm GMT
Japan’s preliminary GDP at 11:50 pm GMT
RBA’s assembly minutes at 12:30 am GMT (Feb 15)
U.Okay.’s labor market numbers at 7:00 am GMT (Feb 15)
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What to Watch: NZD/JPY
NZD/JPY 1-hour Foreign exchange Chart
No main financial studies or catalysts confirmed up at the moment, so market gamers continued to commerce their fears of elevated geopolitical tensions between Russia and Ukraine (and the U.S.).
Within the FX house, this meant power for safe-havens just like the yen and weak point for high-yielding bets just like the Aussie and Kiwi.
NZD/JPY has now damaged under a development line that’s been supporting the pair since late January.
Kiwi is sporting lengthy wicks across the 76.50 ranges however up to now it hasn’t seen sustained shopping for stress. It additionally doesn’t assist that NZD/JPY is buying and selling under the 100 and 200 SMA on the 1-hour chart.
Are we seeing a breakdown of NZD/JPY’s short-term uptrend?
I’m not seeing top-tier studies on the docket within the subsequent buying and selling periods so we might see the Russia-Ukraine and U.S. inflation headlines proceed to play out. Except we see constructive headlines, NZD/JPY will probably prolong its downswing and head to areas of curiosity like 76.00 or 75.80.
If we see promising headlines, nevertheless, or if U.S. merchants began the week by taking dangers, then NZD/JPY might return to its uptrend above the 100 and 200 SMA.
