November 2, 2021

Daily U.S. Session Watchlist: NZD/JPY

 This pair recently busted through its triangle resistance and now seems to be making a retest.

Will buyers jump back in soon?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at AUD/JPY’s uptrend ahead of the RBA decision. 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:

RBA kept interest rates on hold at 0.10% as expected, drops yield target

RBA head Lowe: Markets may have overreacted to inflation data

BOJ minutes: Supply chain shortages weighing on global trade and output

Asian shares looking mixed ahead of this week’s policy decisions

China pledges policy support for consumer services sector

Crude oil prices advance on lack of OPEC production boost

Swiss CPI up from 0.0% to 0.3% vs. 0.2% forecast

Swiss retail sales rose 2.5% y/y vs. 1.4% forecast, 0.8% previous

Spanish manufacturing PMI fell from 58.1 to 57.4 vs. 58.2 consensus

Upcoming Potential Catalysts on the Forex Economic Calendar:

New Zealand GDT dairy auction coming up

RBNZ financial stability report at 8:00 pm GMT

New Zealand quarterly employment change at 9:45 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: NZD/JPY

In the absence of top-tier catalysts from Uncle Sam in the upcoming New York session, I’m lookin’ at the next major event on deck!

New Zealand has its quarterly employment report due, and a slower pace of hiring at 0.4% is eyed. Still, this should be enough to bring the jobless rate down from 4.0% to 3.9% in Q3.

An upside surprise might continue to fuel RBNZ rate hike hopes, which might encourage Kiwi bulls to charge at current levels.

After all, this lines up with the broken triangle resistance and 50% Fibonacci retracement level on the upside breakout. To top it off, it coincides with the dynamic support at the moving averages, too!

Stochastic is inching lower but already dipping into the oversold region to reflect exhaustion among sellers. Turning higher would confirm that buyers could take NZD/JPY back up to the swing high around 82.20 or higher.