23 February 2021 Morning Session Analysis
Kiwi jumped following an improvement in credit rating to AA++.
The New Zealand dollar which broadly known as Kiwi managed to stretched its gains while hitting the 22 months high-level yesterday as the well-known global credit rating agency – Standard and Poor (S&P) upgraded the rating of New Zealand back to the level seen in year 2009. The upgrade in New Zealand’s rating from AA – – to AA++ is effectively sending signals to the global investors that New Zealand is on a positive economic trajectory. The higher credit ratings and a ‘stable outlook’ attached typically will attract more overseas capital flow into the local market, exerting huge buying momentum in Kiwi market. However, the gain of Kiwi was limited following the release of a downbeat economic data. According to the Statistics New Zealand, Retail Sales data came in at -2.7%, missing the economist forecast at -0.5%, showing that the consumer spending behaviour in New Zealand tampered, where pandemic’s fallout continue to weigh on the nation’s economic recovery. During Asian early trading session, the pair of NZD/USD dropped 0.01% to 0.7327.
In the commodities market, crude oil price appreciated by 0.85% to $59.50 per barrel as of writing amid Texas Freeze outweighs the market pessimism over the adjustment of oil production cuts in the upcoming OPEC+ meeting. As of now, market participants are eyeing the 3rd – 4th March meeting which in a large extent would determine the balance of global oil market as well as the future direction of the oil price. Besides, the gold price surged 0.08% to $1811.10 a troy ounce amid weakening of dollar index.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – Average Earning Index + Bonus (Dec) | 3.6% | 4.1% | – |
| 15:00 | GBP – Claimant Count Change (Jan) | 7.0K | 35.0K | – |
| 18:00 | EUR – CPI (YoY)(Jan) | 0.3% | 0.2% | – |
| 23:00 | USD – CB Consumer Confidence (Feb) | 89.3 | 90.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 90.00. MACD which illustrated bearish bias momentum suggest the index to extend its losses after it successfully breakout below the support level at 90.00.
Resistance level: 90.45, 90.75
Support level: 90.00, 89.60
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.4085. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.4085, 1.4150
Support level: 1.4010, 1.3945
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2165. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.2165, 1.2195
Support level: 1.2105, 1.2065
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 105.10. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses toward the support level at 104.65.
Resistance level: 105.10, 105.30
Support level: 104.65, 104.35
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the higher level. MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 0.7940, 0.7970
Support level: 0.7890, 0.7850
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7335. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.7300.
Resistance level: 0.7335, 0.7375
Support level: 0.7300, 0.7240
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2610. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2610, 1.2685
Support level: 1.2555, 1.2485
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8985. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.8920.
Resistance level: 0.8985, 0.9040
Support level: 0.8920, 0.8850
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 61.70. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 61.70, 62.45
Support level: 60.65, 59.80
GOLD_, H4: Gold price was traded higher while currently testing the downward trendline. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the trendline.
Resistance level: 1825.40, 1839.50
Support level: 1803.00, 1786.55