New Zealand is about to print its quarterly CPI soon, so I’m looking at this simple range setup on NZD/CHF.
Will we see a bounce today?
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:
OPEC Secretary General says that output cuts were a pre-emptive measure
BOE Governor Bailey: Inflationary pressures will require a stronger response
BOJ Governor Kuroda: Appropriate to conduct more policy easing
Japanese FM Suzuki: Will take decisive action on FX speculative moves
New Zealand BusinessNZ services index down from 58.6 to 55.8
U.K. Rightmove HPI showed 0.9% increase in house prices
Japanese tertiary industry index rebounded by 0.7% after earlier 0.5% dip
Japanese industrial production upgraded from 2.7% to 3.4% growth
U.S. Empire State manufacturing index at 12:30 pm GMT
BOC Business Outlook Survey at 2:30 pm GMT
New Zealand quarterly CPI at 9:45 pm GMT
RBA monetary policy meeting minutes at 12:30 am GMT (Oct. 18)
Chinese GDP at 2:00 am GMT (Oct. 18)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ? ?️
What to Watch: NZD/CHF
NZD/CHF 1-hour Forex Chart
This week is off to a bit of a slow start, so I’m looking at this simple range setup ahead of potential fireworks.
NZD/CHF has been pacing back and forth between support at the .5550 minor psychological mark and resistance at .5670.
The pair is making its way towards the bottom of the range for another support test. Will it hold this time?
Stochastic is reflecting the presence of bullish vibes, as the oscillator is heading north. Price might keep following suit until overbought conditions are met.
Meanwhile, the moving averages are oscillating but appear to be holding as dynamic support levels at the moment.
If buying pressure picks up right here, NZD/CHF could recover to the top of the range soon!
Then again, it could all boil down to the release of the quarterly CPI report in New Zealand. After all, this would set the tone for future RBNZ policy moves.
Analysts are expecting to see a bit of a slowdown in inflation, as the Q3 figure is slated to fall from 1.7% to 1.5% due to easing fuel costs during the period.
Still, stronger than expected results might be enough to get Kiwi bulls excited about yet another big rate hike from the RBNZ.
Do you think a downside surprise is likely though?
