– USD/CAD Slips to Fresh Apr Low Following BoC Meeting;
– NZD/USD Grinds Towards Mar Low (0.6890) Ahead of China GDP, New Zealand CPI.
Chart – Created Using Trading View
- USD/CAD slips to a uninformed monthly low of 1.3253 following a Bank of Canada (BoC) seductiveness rate decision, with a span during risk for a serve decrease as it continues to carve a array of reduce highs lows; even yet a broader opinion stays slanted to a topside, a dollar-loonie might continue to give behind a allege from progressing this year as it struggles to safety a operation carried over from a prior month.
- Indeed, a BoC appears to be in no rush to lift a benchmark seductiveness rate off of a record-low as ‘the economy still has element room to grow,’ though a executive bank appears to be softening a dovish opinion for financial process as officials ascent their expansion foresee and design a economy to work during full-capacity in a initial half of 2018; might see Governor Stephen Poloz and Co. continue to change their change over a entrance months as ‘employment expansion has remained organisation during a inhabitant level.’
- At a same time, Dallas Fed President Robert Kaplan, a 2017-voting member on a Federal Open Market Committee (FOMC), warned a executive bank has a range to unpack a change piece after this year as he expected a U.S. economy to grow in additional of 2% this year, and a devious paths for financial process might continue to encourage a long-term bullish opinion for USD/CAD as Chair Janet Yellen and Co. seem to be on march to serve normalize financial process over a entrance months.
- Nevertheless, a near-term opinion stays slanted to a downside amid a near-term array of reduce highs lows, though need to see a tighten subsequent 1.3280 (50% retracement) to open adult a subsequent downside aim around 1.3200 (61.8% retracement) followed by 1.3100 (78.6% retracement).
Chart – Created Using Trading View
- NZD/USD extends a decrease from progressing this week as China’s Consumer Price Index (CPI) failed to accommodate marketplace expectations, and a span appears to be on march to exam a Mar low (0.6890) as it struggles to safety a opening weekly range; broader opinion for a kiwi-dollar sell rate stays slanted to a downside as cost a Relative Strength Index (RSI) safety a bearish formations carried over from a prior year.
- Nevertheless, a pivotal eventuality risk on daub for a week forward might lean a near-term opinion for NZD/USD as China’s 1Q Gross Domestic Product (GDP) news is expected to uncover a world’s second largest economy expanding another annualized 6.8%; during a same time, marketplace participants might compensate tighten courtesy to New Zealand’s 2Q Consumer Price Index (CPI) following a material pickup during a initial three-months of 2017, and signs of worsening cost pressures might pull a Reserve Bank of New Zealand (RBNZ) to desert a wait-and-see proceed for financial process as ‘the expansion opinion stays positive.’
- However, a RBNZ might continue to tame interest-rate expectations and try to buy some-more time during a subsequent process assembly on May 11 as officials advise ‘numerous uncertainties remain, quite in honour of a general outlook;’ with that said, Governor Graeme Wheeler might mostly keep a written involvement on a internal banking until his depart in Sep as a executive bank conduct warns a serve debasement ‘is indispensable to grasp some-more offset growth.’
- In turn, downside targets sojourn in concentration for NZD/USD, with a Mar low (0.6890) on a radar, followed by a Fibonacci overlie around 0.6820 (23.6% retracement) to 0.6870 (50% retracement).
For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!
Click HERE for a Entire DailyFX Webinar schedule.
Track Retail Sentiment Based on Trader Positioning
Click Here for a DailyFX Calendar
If you’re looking for trade ideas, check out the Trading Guides.
Silver Price: Damage Has Been Done, Lower Prices Ahead
Technical Weekly: USD/JPY and 110.00; Bears’ Kryptonite
Gold Technical Analysis: Breakout Failure Despite Syrian Conflict
Technical Focus: SPX Trendline Hold and Nikkei Trap?
April Forex Seasonality Sees USD Weakness contra AUD, GBP, and EUR
— Written by David Song, Currency Analyst
To hit David, e-mail firstname.lastname@example.org. Follow me on Twitter during @DavidJSong.
To be combined to David’s e-mail placement list, greatfully follow this link.