Daily Forex Market Preview, 14/02/2018
The U.S. dollar was seen falling against its peers on Tuesday amid a lack of any clear market catalysts. In the UK, data showed that consumer prices edged higher once again in January. Headline CPI was seen rising 3.0% on an annual basis while core CPI was also seen higher at 2.7%.
In Japan, the quarterly GDP data showed that the economy advanced only 0.1% on the quarter, missing estimates of a 0.2% increase. The previous quarter’s GDP was however revised higher to 0.6%.
Earlier in the day, New Zealand’s inflation expectations showed that inflation expectations were seen at 1.86% in one year and 2.1% in two years. The data gave a short term bump to the Kiwi dollar. The RBNZ had previously expected inflation to reach 2% band only around 2019. Looking ahead, the Eurozone quarterly GDP data will be coming out.
No changes are expected as the GDP is expected to remain steady at 0.6%. In the U.S. session, inflation data is expected to show a 0.3% increase on the month while core CPI is forecast to rise 0.2%. Retail sales figures will also be coming out at the same time.
NZDUSD intra-day analysis
NZDUSD (0.7319): The New Zealand dollar was seen rallying back to the resistance area of 0.7333 – 0.7280 in early trading today. The kiwi dollar was supported by the stronger inflation expectations data. We expect that the currency pair could turn flat as it trades within this resistance level. The bias remains to the downside with NZDUSD likely to test the lower support around 0.7160. In the event that NZDUSD breaks past the 0.7333 level, we can expect further gains that could be established.