Daily Forex Market Preview, 21/02/2018
The U.S. dollar continued to rise higher on Tuesday as the U.S. markets opened after a long weekend. Economic data was sparse for the most part. The USD managed to remain strong as investors focused on the upcoming FOMC meeting minutes.
In the Eurozone, the ZEW economic sentiment survey showed that German economic sentiment rose to 17.8, beating estimates of 16.0 while the Eurozone economic sentiment was also higher at 29.3. However, both the indexes were weaker compared to the previous month.
Looking ahead, the FOMC meeting minutes today will stand out amid a somewhat busy day ahead. Data from the Eurozone will cover the flash manufacturing and services PMI figures for February.
In the UK, the monthly jobs data will be coming out. No major changes are expected as economists forecast that the UK’s unemployment rate will remain unchanged at 4.3%. Wage growth is also expected to remain broadly stable.
NZDUSD intra-day analysis
NZDUSD (0.7334): The New Zealand dollar has been gradually posting a decline with price action now trading close to the 0.7333 level of support. As long as the support holds NZDUSD could remain biased to the upside. However we expect NZDUSD to consolidate within the range of 0.7388 and 0.7333 region. This sideways consolidation could see NZDUSD likely to break down to the downside targeting the lower support at 0.7160. To the upside, if NZDUSD clears the upper range of 0.7388, then we can anticipate further gains in the near term.