Daily Forex Market Preview, 16/02/2018
The USD was seen trading weaker across the board on Thursday. The biggest gains came from the Japanese yen which surged 0.82% on the day.
Economic data from the U.S. was mixed. Producer price index data from the U.S. showed a 0.4% increase matching estimates and rising to an annual pace of 2.7%. Industrial production figures showed a 0.1% decline in January with previous month’s data being revised lower as well.
The capacity utilization rate slipped to 77.5%. The regional manufacturing index data showed that the Philly Fed manufacturing index rose to 25.8 beating estimates while the NY Fed manufacturing index eased from 17.7 in the previous month to 13.1 in February.
Looking ahead, the retail sales data from the UK is expected to show a 0.5% increase after falling 1.5% the month before. The data comes amid UK households facing faster inflation and slower wage growth. Data from the U.S. today will see the housing starts and building permits data coming out.
NZDUSD intra-day analysis
NZDUSD (0.7420): The New Zealand dollar is seen testing the highs around 0.7420 level, marking the highs established from two weeks ago. The reversal in the price action suggests upside momentum with the U.S. dollar continuing to remain weak. Watch for a retest of support near the 0.7333 region which served as resistance. To the upside, NZDUSD could be targeting 0.7480 level where the next main resistance level will be tested.