18 October 2021 Morning Session Analysis
New Zealand surged amid hawkish expectation.
The New Zealand Dollar surged over the backdrop of high inflation data from the region of New Zealand, which spurring hopes that the Reserve Bank of New Zealand would start to contract their earlier monetary policy in order to combat the high inflation risk in future. According to Statistics New Zealand, the quarter New Zealand Consumer Price Index (CPI) notched up significantly from the previous reading of 1.3% to 2.2%, exceeding the market forecast at 1.4%, the highest quarterly reading since June 1987. Housing-related costs, mainly construction and local authority rates were the biggest contribution to the quarterly increase. The inflation pressures would be prompting investors to anticipate a more aggressive resolve by the central bank, increasing the appeal for the New Zealand Dollar. Nonetheless, investors would continue to scrutinize the latest updates with regards of monetary policy as well as further economic data to gauge the likelihood movement for the New Zealand Dollar. As of writing, NZD/USD appreciated by 0.40% to 0.7092.
In the commodities market, the crude oil price appreciated by 0.59% to $83.05 per barrel as of writing. The oil market extends its gains as market participants speculated that the easing Covid-19 cases as well as rapid vaccination program around the world would continue to enhance the outlook for this black-commodity. On the other hand, the gold price slumped 0.05% to $1770.55 per troy ounces as of writing following the United States released its upbeat retail sales data last Friday.
Today’s Holiday Market Close
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Today’s Highlight Events
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 94.40. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 94.40, 95,00
Support level: 93.75, 93.05
GBPUSD, H4: GBPUSD was traded higher while currently near the resistance level at 1.38005. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3805, 1.3910
Support level: 1.3670, 1.3560
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.1530. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1680.
Resistance level: 1.1680, 1.1815
Support level: 1.1530, 1.1370
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 114.35. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 114.35, 115.40
Support level: 113.45, 112.05
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.7455. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7455, 0.7560
Support level: 0.7335, 0.7220
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7110. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7110, 0.7155
Support level: 0.7015, 0.6960
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.2440. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2440, 1.2625
Support level: 1.2265, 1.2040
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9225. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9365, 0.9465
Support level: 0.9225, 0.9155
CrudeOIL, Daily: Crude oil price was traded higher while currently testing the resistance level at 85.15. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 85.15, 93.05
Support level: 75.75, 66.75
GOLD_, Daily: Gold price was traded lower following prior retracement from the resistance level at 1792.85. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1728.05.
Resistance level: 1792.85, 1831.45
Support level: 1728.05, 1684.05