Daily Forex Market Preview, 13/02/2018
The U.S. dollar was seen trading rather flat on Monday. Lack of economic data and a modest recovery in the equity markets saw most of the currencies trading in a range. Earlier today, BJ Governor Kuroda said that the central bank must maintain its QE program as it takes time for inflation to reach the BoJ’s 2% inflation target rate. Kuroda was addressing the Lower House Budget Committee.
Looking ahead, the economic data today will focus on the annual CPI data from the UK and will cover the period of January. Economists forecast that headline CPI in the UK rose 2.9% on the year. This marks a slower pace of increase in inflation for the second month. Core CPI is however expected to rise 2.6% on the year.
In the U.S. trading session, FOMC member Loretta Mester will be speaking while later in the evening, Japan will be releasing its preliminary GDP data. Economists forecast that GDP advanced 0.2% on the quarter, down from 0.6% previously.
NZDUSD intra-day analysis
NZDUSD (0.7261): The NZDUSD currency pair has been modestly drifting higher. Following the breakdown below 0.7333 level, price action formed a minor support level at 0.7280. A retest back to this level could see NZDUSD forming resistance. A reversal at this level will signal the downside price action. NZDUSD could be seen targeting the support at 0.7160. To the upside, a breakout above 0.7280 will keep NZDUSD trading flat within the resistance and support levels. Further gains can be expected only on a breakout above 0.7333 level.