Daily Forex Market Preview, 23/01/2018
The Bank of Japan’s monetary policy meeting held earlier today saw the central bank leaving interest rates and its QQE purchases unchanged. The Japanese yen was seen strengthening on the back of the BoJ’s meeting. Governor Kuroda is expected to hold a press conference in a few hours.
The U.S. dollar was seen giving up its gains despite the Congress approving measures to fund the government for a period of three weeks. This comes after a brief three-day shut down. The economic calendar was sparse yesterday leaving most of the trading to the broader political developments from Washington.
Looking ahead, the UK’s public sector net borrowing data is expected to be released today followed by the ZEW economic sentiments from Germany and the Eurozone. Later in the day, the Richmond manufacturing index data will be released.
NZDUSD intra-day analysis
NZDUSD (0.7323): The New Zealand dollar edged higher on Tuesday as price posted an intraday high of 0.7354. However, the Kiwi was seen giving up the gains rather quickly. A bearish close on the day off the intraday highs could signal an eventual decline in the coming few sessions. Support at 0.7160 remains in focus for the Kiwi dollar as we expect prices to correct back to this support level. On the 4-hour chart, the Stochastics oscillator continues to point to easing momentum which could signal a potential correction.