Daily Forex Market Preview, 30/01/2018
The U.S. dollar nudged higher on Monday as the core PCE data released yesterday showed a 0.2% increase on the month matching estimates and rising from 0.1% previously. On a year over year basis, the core PCE price index rose 1.5%, unchanged from the previous month. Personal income and spending data was also positive rising 0.4%.
Ahead of the Fed’s meeting on Wednesday, the U.S. dollar could be seen rising with the Fed expected to stay hawkish on rates. Elsewhere, the retail sales data from Japan showed a 3.6% increase beating expectations of 2.1%.
Looking ahead the preliminary GDP data from the Eurozone for the fourth quarter of 2017 will be released today. Expectations show a 0.6% increase in GDP on the quarter. Later in the day, BoE Governor Carney will be speaking in the UK parliament.
NZDUSD intra-day analysis
NZDUSD (0.7352): The NZDUSD has been trading sideways with price strongly consolidating around the 0.7333 level. Further evidence is required of a break down below this level that could validate a correction towards 0.7160. To the upside, the potential for a bullish pennant pattern could indicate further gains. However, the fact that NZDUSD has been trading flat near the current highs suggests exhaustion to the rally.