NZDUSD extends rally
Gary Christie November 19, 2020 3:25 AM
The pair is testing key resistance at 0.694: Chart
The US Dollar was strongly bearish against all of its major pairs on Wednesday. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications declined 0.3% for the week ending November 13th compared to -0.5% in the previous week. Finally, Housing Starts spiked to 1,530K on month in October (1,460K expected), from a revised 1,459K in September.
On Thursday, Initial Jobless Claims for the week ending November 14th are expected to decline to 700K, from 709K in the week before. Continuing Claims for the week ending November 7th are expected to fall to 6,400K, from 6,786K in the prior week. The Leading Index for October is expected to rise 0.7% on month, in line with September. Finally, Existing Homes Sales for October are expected to slip to 6.46M on month, from 6.54M in September.
The Euro was also bearish against most of its major pairs with the exception of the USD. In Europe, the European Commission has posted final readings of October CPI at +0.2% on month, vs +0.1% in September. Also, the U.K. Office for National Statistics has reported October CPI at +0.7% (vs +0.5% on year expected) and PPI at +0.0%, vs +0.1% expected.
The Australian dollar was mixed against all of its major pairs.
Looking at Wednesday's movers, the NZD/USD gained 44 pips and remains one of the best performing pairs over the last 5 days with a gain of 94 pips. The pair has gained more upside momentum after breaking above a diamond continuation pattern. Price action is testing key resistance at the 0.694 level from back in March of 2019. As long as 0.6675 can hold as support and the pair can close above 0.694, look towards a continuation towards 0.7065 resistance and the uptrend to continue.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.