Home Forex Forex Market Analysis Daily market overview: New Zealand CPI rose

Daily market overview: New Zealand CPI rose

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News headlines

The consumer’s price index rose 0.5% in the three months, while annual inflation was 1.1%

The result was higher than expected with 0.4%

The Reserve Bank has the mandate of keeping yearly inflation between one and three percent over the medium term.

However, inflation has remained weak, and the central bank has declared that the official cash rate is likely to stay at a record low 1.75 percent “for a considerable period.”

On the other hand, After yesterday’s data of the bank of England and today’s news with the result of retail sales of -1.2%, unlike expectation of -0.5%. These all have increased concerns that the BoE might not take another rate increase later in 2018. Disappointing employment and construction data earlier this month show uncertainty for a late 2018 rate increase

NZD/USD

On the daily chart, we can see that the price respected a strong resistance zone with a straight rebound. The pair is currently moving downward, inside a sidewchannelhann between 0.718 & 0.742. The next price target is aiming at its support level at 0.718 which is exactly its 200 moving average.

NZD/JPY

On the daily chart, the price bounced from a bunch of demand levels

It has reversed from a descending trend line connecting the highs, from the resistance 79.5, and the 50% Fibonacci level

A leading hammer candle started this bearish leg, and it’s expected to go further down, to 77.65.

 

GBP/USD

On the daily chart, the price had its straight bullish way to the demand 1.4335; then, it went down with two remarkable bearish candles.

The pair has made two decisive reversal pattern ( double top & wedge), With a false break-out of the upper trendline. The price is supposed to reach the supply area (1.3965-1.4055),  located below the lower trend line, that starts at its November 2017 low, too.

 

 


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