Daily Forex Market Preview, 12/02/2018
The U.S. dollar managed to hold its ground but, was trading mixed on Friday. The EURUSD posted declines into the close while the equity markets saw another volatile day. On the economic front, data from the UK showed that manufacturing production rose 0.3% on the month as expected. The previous month’s figures were revised down from 0.2% from the initially reported 0.4% increase. Construction output seemed to be better, rising by 1.6%, which beat estimates of a 0.7% increase while industrial production declined 1.3% on the month.
Canada’s monthly employment figures surprised the public to the downside. The economy was seen losing 88,000 jobs in January with the unemployment rate rising to 5.9% up from 5.7% in December.
Looking ahead, the economic calendar is relatively quiet today with no major releases expected. Switzerland will be releasing its monthly inflation data. Forecasts predict a 0.1% decline in consumer prices. Later in the day, Japan’s producer price index data will be coming up with forecasts showing a slower pace of growth at 2.7%.
NZDUSD 12-02-2018 Intra-day analysis
NZDUSD (0.7272): The NZDUSD currency pair was seen forming a bottom with prices attempting to retrace the losses. In the short term, the reversal could see NZDUSD rising back to the price area of 0.7333 – 0.7280. With resistance most likely to be established here, NZDUSD could be seen either moving sideways in the short term or posting a reversal off this level. The downside target for NZDUSD remains at 0.7160 with the potential for further declines. This could push the kiwi dollar towards the next lower support level at 0.6943.