Antipodean currencies heavily in focus this week
During the upcoming week, the New Zealand and Australian economies are heavily in focus, as traders and investors await a series of high-impact data and events from both nations. The New Zealand dollar currency could incur a major bout of volatility this week as New Zealand holds a General Election. The Australian dollar is also set for a busy week as RBA Governor Lowe delivers a scheduled speech, while the Reserve Bank of Australia Meeting Minutes is also due to be released this week.
Inflation data is also on traders radar this week, with the United Kingdom, European, Canadian, and Japanese economies all releasing important Consumer Price Index numbers. The United States economy also releases important Retail Sale, Jobs, and Consumer Confidence data this week.
Monday 16th November, US Empire State Survey
The Empire State Manufacturing Index measures the level of a diffusion index based on surveyed manufacturers in New York state. The index is often considered a leading indicator of the overall health of the United States economy. Businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
- The USDJPY pair is only bullish while trading above the 106.00 level, key resistance is found at the 107.30 and 108.00 levels.
- If the USDJPY pair moves below the 106.00 level, sellers may test towards the 104.00 and 103.50 levels.
Tuesday 17th November, RBA Meeting Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is bearish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate decrease.
- The AUDUSD pair is only bearish while trading below the 0.7200 level, key support is found at the 0.7100 and 0.6880 levels.
- If the AUDUSD pair moves above the 0.7200 level, buyers may test towards the 0.7330 and 0.7410 levels.
Wednesday 18th November, UK Consumer Price Index
The United Kingdom Consumer Price Index is released by the National Statistics and measures the change in the price of goods and services from the perspective of the consumer. CPI is a key indicator that measures inflation and changes in purchasing trends, therefore CPI figures are closely watched by the Bank of England. A rise in the Consumer Prices Index may determine whether the Bank of England increases interest rates in order to manage inflation and slow economic growth.
- The GBPUSD pair is only bearish while trading below the 1.3030 level, further losses towards the 1.2950 and 1.2850 levels remain likely.
- If the GBPUSD pair trades above the 1.3030 level, buyers may test towards the 1.3200 and 1.3380 resistance levels.
Thursday 19th November, US Initial Jobless Claims
US Initial Jobless Claims is released by the US Department of Labor on a weekly basis and is a measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This figure measures the overall strength in the United States labour market and is closely followed by both traders and investors.
- The USDCAD pair is only bearish while trading below the 1.3310 level, key support is found at the 1.3000 and 1.2900 levels.
- If the USDCAD pair moves above the 1.3310 level, buyers will likely test towards the 1.3380 and 1.3460 resistance levels.
Friday 20th November, US Consumer Sentiment
The Michigan Consumer Sentiment Index released by the University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive for the US dollar currency, while a low reading is seen as negative for the US dollar currency.
- The USDCHF pair is only bearish while trading below the 0.9100 level, key support is found at the 0.8980 and 0.8900 levels.
- If the USDCHF pair trades above the 0.9100 level, buyers may test towards the 0.9240 and 0.9300 resistance levels.