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Kiwi hovering above key support near 0.8050

The Kiwi is edging lower during the Asia session, down another 20 pips at 0.8078 and sitting just above the key support level of 0.8050 which held numerous times last week.

The upcoming week will feature some important economic data out of NZD, including Builiding Permits, RBNZ Business Confidence, and Private Sector Credit. According to Mike Jones, Currency Strategist at BNZ, “Thursday’s building consents for April should bounce back strongly from March’s 9.1% drop, a figure that was impaired by very low apartment numbers as well as trading day impacts. A double digit gain isn’t out of the question in these wobbly month-to-month numbers. More important is that a decent bounce in April would keep the strong underlying growth trend intact. April’s credit aggregates will be worth a look too, to gauge the pressure that’s building on the RBNZ to taper the degree of interest rate stimulus it is currently underwriting.”

The FXStreet.com trend index remains slightly bearish on the daily chart, while the ob/os index reads neutral. Both short term moving averages and the RSI (14) remain in bearish set up on the daily chart.Initial support sits at 0.8050 (support from last week), followed by 0.8006 (low price from May 23rd). Initial resistance sits at 0.8129 (the 9dma).

Flash: We look for a total CapEx decline of 1.5% from Australia- NAB

According to the analyst team at NAB Global Markets, “as a prelude to business investment in the March quarter this week we’ll get Construction Work Done (Wednesday) and New Private Capital Expenditure (CapEx, Thursday). For Construction Work Done, we expect Q1 to be flat, just below the market consensus of +1%. It’s an amalgam of whais likely to show some rise in residential fixed investment, lacklustre non-residential building investment, engineering construction (likely still high) and public investment mostly soft. The engineering construction line will be an important barometer of major resource project spending.”
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Nikkei back to the 14k level, down -3% for the day

The Nikkei index has resumed the selling started past Thursday, down -3.11% today alone, adding for a -11% since almost touching the 16000 points mark last Thursday in early Tokyo trade, before Japanese officials started talking up the Yen. The index has printed session lows around the 14040 level, from a close Friday around the 14600 points mark.
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