Daily Forex Market Preview, 29/01/2018
The U.S. dollar closed last week on a volatile note with the dollar index losing 0.3% on Friday. The decline also marked the biggest weekly loss since June 2017. On Thursday, President Trump clarified on the comments made earlier by the Treasury Secretary Steven Mnuchin about his preference for a weaker dollar. Trump said that Mnuchin’s comments were taken out of context. This sent the USD to rise briefly but the currency gave up those gains by Friday’s close.
The preliminary GDP data from the U.S. was released on Friday. The fourth quarter GDP was seen rising 2.6% which was weaker than expected. In the UK, the advance GDP report showed that the UK’s economy rose 0.5% on the quarter.
Looking ahead, the economic data today will include the German import prices while in the NY trading session, the core PCE price index data will be released. Economists expect core PCE to rise 0.2% on the month. Personal income and spending data will also be released.
NZDUSD intra-day analysis
NZDUSD (0.7342): The new Zealand dollar has stalled near the top end of the rally with price settling above 0.7333. As long as this support holds, NZDUSD could be seen attempting to post further gains above the previous highs at 0.7407. The downside risks could start to build in the event that NZDUSD breaks down below 0.7333. This would mark a potential correction towards the next main support at 0.7160.