NZDUSD surpasses 70 cents as the uptrend continues
Gary Christie November 24, 2020 9:23 PM
The pair has not broken 0.70 since June of 2018.
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, the Conference Board's Consumer Confidence Index fell to 96.1 on month in November (98.0 expected), from a revised 101.4 in October.
Wednesday will be a busy day regarding U.S. Eco data ahead of the Thanksgiving holiday Thursday where U.S. markets will be closed.
We can expect the Mortgage Bankers Association's Mortgage Applications data for the week ending November 20th.
Initial Jobless Claims for the week ending November 21st are expected to fall to 730K, from 742K in the week before. Continuing Claims for the week ending November 14th are expected to decline to 6,000K, from 6,372K in the prior week.
Wholesale Inventories for the October preliminary reading are expected to rise 0.4% on month, in line with the September final reading.
GDP for the third quarter second reading is expected to remain at +33.1% on quarter, in line with the third quarter advanced reading. Durable Goods Orders for the October preliminary reading are expected to increase 0.9% on month, compared to +1.9% in the September final reading.
Personal Income for October is expected to be unchanged on month, compared to +0.9% in September. Personal Spending for October is expected to rise 0.4% on month, compared to +1.4% in September.
The University of Michigan's Consumer Sentiment Index for the November final reading is expected to remain at 77.0 on month, in line with the November preliminary reading. New Home Sales for October are expected to rise to 975K on month, from 959K in September.
Finally, the Federal Open Market Committee's Meeting Minutes are expected.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the German Federal Statistical Office has posted final readings of 3Q GDP at +8.5% (vs +8.2% on quarter expected). Germany's IFO Business has released November Climate Index at 90.7 (vs 90.3 expected) and Expectations Index at 91.5 (vs 93.5 expected). Also, France's INSEE has reported November indicators on business confidence at 79 (vs 84 expected) and manufacturing confidence at 92 (vs 91 expected).
The Australian dollar was bullish against all of its major pairs.
Looking at active pairs, the NZDUSD broke above our first resistance target as the pair continues its uptrend. On a daily chart, look for the 20-day moving average to act as support. The next major levels to watch on the upside are 0.7065 and 0.7150.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.