Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
Despite downsides predicted by other experts weeks ago for the pair, the New Zealand dollar continued to prove that it has more strength than the Canadian dollar. The exchange rate is widely projected to continue climbing up despite its most recent pullback. Prices should head towards their resistance and finally reach ranges last seen in April 2019. That would definitely help the kiwi maintain the bullish market, propping the 50-day moving average even further against the 200-day moving average. Despite poor expectations for New Zealand’s economic performance, the antipodean currency remains poised to secure big gains ahead of the employment change and unemployment rate reports. Results from those aforementioned reports aren’t expected to come in bright but if they do show stronger-than-expected figures it could help the risk-sensitive currency. Also, investors are waiting for the RBNZ’s interest rate decision due soon.
As of writing, the trading pair has partly neutralized this Monday following the slight slip up from the last day of July’s trading. Looking at the chart, it’s evident that bulls and bears are having a tug of war and both sides have forced the pair to steady. And since the 50-day MA is lower than the 200-day MA, the pair is still in bearish markets. However, it’s most likely that the pair will go up as the US dollar remains significantly weaker. But experts are also warning that extreme overbought condition for the pair could eventually trigger prices to fall. Perhaps this is why bulls are also acting cautiously. There is a list of crucial data and events for the pound sterling and the US dollar. Later this week, the policymakers from the Bank of England are set to announce their official interest rate decision for July. Reports say that the BOE is expected to leave it unmoved at about 0.10% and that decision could slightly have an effect on the British pound’s power.
The euro to Canadian dollar exchange rate could see a slight correction as bulls fail to break out. It’s believed that prices could go down towards their support level but the question of whether it could go lower is another question. The slide will cause the 50-day moving average to slow down but it isn’t expected to cause it to fall lower against the 200-day moving average. The Canadian dollar made a last-minute jab against the euro at the end of July thanks to the stronger monthly gross domestic product produced by the Canadian economy. It was recently reported that Canada’s May GDP made a comeback from -11.7% to around 4.5%. The results came in significantly stronger than the prior projected 3.5%, helping the Canadian dollar’s cause. The next big report for the loonie is due on Friday and it’s the July employment change. Experts believe that it will drop down from 952.9K to about 415.0K, and bulls are praying that it will come in better.
The New Zealand dollar is in deep waters against the Japanese yen. The fundamentals aren’t working well for the kiwi and the looming decision of the Reserve Bank of New Zealand is further slowing it down. The downside potential for the pair is present and it could push the NZDJPY’s prices down towards its support level. That would definitely be alarming for bulls who have just recently buoyed the 50-day moving average higher against the once-dominant 200-day moving. Tomorrow, New Zealand’s employment change report for the second quarter of the year is scheduled to be released. Experts estimate that it will, unfortunately, drop from about 0.7% to -2.0% because, during that quarter, the antipodean country was still tackling the pandemic. In addition to that, Australia’s second quarter unemployment rate is projected to surge from 4.2% to around 5.8%. Then the RBNZ will unveil its interest rate decision next week.