The Eurozone is poppin’ up a bunch of manufacturing and services PMIs while forex geeks are prepping for the Reserve Bank of New Zealand (RBNZ) event.
How do you think EUR/NZD will react to these upcoming events?
Before moving on, ICYMI, today’s Asia-London session watchlist looked for opportunities after AUD/NZD popped up ahead of the RBNZ’s policy decision this week. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Japan’s markets out on banking holiday
U.S. could unveil Strategic Petroleum Reserve (SPR) swap deals as early as Tuesday in a bid to fight high oil prices
Australia’s Markit composite PMI rose to a five-month high of 55 in Nov 2021 from 52.1 in Oct
Gold weighed by dollar strength, crude oil lower on U.S. SPR chatter
NZD slips ahead of RBNZ decision, AUD/USD remains weak on central bank policy divergence
Weakness in French manufacturing offset by sharper service sector growth
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s manufacturing and services PMIs at 9:00 am GMT
U.K.’s manufacturing and services PMIs at 9:30 am GMT
BOE MPC member Haskel to give a speech at 11:00 am GMT
U.S. manufacturing and services PMIs at 2:45 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/NZD
EUR/NZD is struggling to sustain the upswing it started earlier this week when a lot of forex playas took profits from their long NZD positions ahead of the RBNZ’s decision.
The pair is now chillin’ around the 1.6200 psychological handle just as Stochastic gave its “overbought!” signal. Coincidence? I think not!
If today’s Eurozone PMI reports print weak numbers as the rising cases and lockdown prospects in the region suggest, then EUR/NZD could dip back down to the 1.6100 range support.
It doesn’t hurt that EUR/NZD’s daily average volatility hints that the pair is just 30 pips from maxing out its average daily directional move.
But don’t discount further gains just yet!
Surprisingly strong manufacturing and services sentiment, or some more NZD selling ahead of the widely expected RBNZ rate hike, could propel EUR/NZD all the way to the 1.6300 inflection point.
How about you? Which way do you think EUR/NZD will go in the next few hours?
