One significant event to look out for today is the second quarter inflation report to be published tonight at 22:45 GMT. The markets are forecasting an additional 0.5% QoQ which translates into a 1.6% annualized inflation rate. This rate is below the 2% mid-point rate of the RBNZ’s 1-3% target rate.  Unless, the data published by RBNZ is unexpectedly positive for the NZ inflation, we can assume that the kiwi maybe vulnerable against the US dollar as the latter has been shown some confidence from the investors during the past weeks.

Now, the NZDUSD has reached 0.6770 (price indicative at the time of writing), dropping by 1.07% since last Monday, and we would expect it to potentially trade between 0.67200 support level to 0.68000 resistance level for today.

On the other hand, GBPUSD has shown a notable recovery of more than 1.07% since last week when it fell to 1.31227. Cable has shown a huge decline, since Donald Trump has implicated that the soft Brexit by the UK prime minister Theresa May will affect negatively both US and UK trade – and even the possibility for trans-Atlantic trade agreements between the two nations. The British pound recovered strongly later because in the Press conference with May he said that US will welcome trade talks with UK post Brexit.

The pair reached 1.32690, and analysts will expect it to find resistance at 1.32750 and if it breaks above it could take the pair up to 1.33000 later today.

Was this article helpful?

0 0 0