Is {that a} reversal sample I’m seeing on EUR/NZD?

And might the RBNZ’s not-so-hawkish announcement hold the rally going?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out USD/CHF testing an space of curiosity forward of the U.S. PMI releases. Make sure to try if it’s nonetheless a superb play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Information:

U.S. flash manufacturing PMI slipped from 50.2 to 48.5 to replicate contraction in Might vs. estimated dip to 50.0, flash providers PMI improved from 53.6 to 55.1 to sign quicker business progress

U.S. Richmond manufacturing index declined from -10 to -15 to point worsening situations in Might as a substitute of anticipated enchancment to -8

U.S. new residence gross sales rose from downgraded 656K in March to 683K in April vs. estimated 665K determine, reflecting ongoing rebound in housing market

New Zealand headline retail gross sales slumped 1.4% in Q1 2023 vs. estimated 0.2% uptick, earlier quarter’s studying revised down from -0.6% to -1.0%

RBNZ hiked rates of interest by 0.25% as anticipated from 5.25% to five.50% however signaled risk of pausing quickly, as policymakers had a cut up determination to tighten

U.Okay. headline CPI fell from 10.1% to eight.7% year-over-year in April vs. estimated 8.2% determine to replicate cussed inflationary pressures, core CPI up from 6.2% to six.8% as a substitute of holding regular

U.Okay. producer enter costs fell 0.3% month-over-month in April vs. projected 0.1% uptick, output costs stayed flat as a substitute of displaying 0.2% achieve

German Ifo enterprise local weather index down from 93.6 to 91.7 in Might vs. projected 93.0 studying, suggesting worsening financial situations

Worth Motion Information

Overlay of NZD Pairs 15-min

After consolidating for essentially the most half within the earlier buying and selling periods, the Kiwi took a pointy tumble throughout the board when the RBNZ introduced its coverage determination in early Asian market hours.

Although the central financial institution nonetheless hiked charges by 0.25% as anticipated, RBNZ officers steered that rates of interest have peaked and that they really had a cut up vote to tighten this time.

Of their official assertion, policymakers famous that world progress stays weak whereas inflationary pressures are subsiding. On the home entrance, in addition they identified that companies are reporting slower demand situations.

In a while throughout the London session, the British pound obtained a little bit of a lift due to stronger than anticipated inflation information, as these would possible pressure the BOE to tighten financial coverage once more.

BOE Governor Bailey’s speeches at 9:30 am and 1:00 pm GMT
U.S. Treasury Secretary Yellen’s speech at 2:05 pm GMT
FOMC assembly minutes at 6:00 am GMT

Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

EUR/NZD 1-hour Foreign exchange Chart by TV

Take a look at this steep climb by EUR/NZD!

The pair rallied off the lows across the 1.7200 space and zoomed straight as much as its double backside neckline close to the 1.7500 mark.

A break previous this resistance degree might set off an uptrend that’s at the least the identical top because the chart sample or 300 pips.

In that case, the pair might make all of it the best way previous R2 (1.7670) and onto R3 (1.7810) if bullish strain is sustained.

However, a return in bearish vibes might result in a dip again to R1 (1.7440) and even the pivot level (1.7310) close to yesterday lows.

Simply word that EUR/NZD strikes a median of 148.4 pips per day, so hold this determine in thoughts when setting entries and exits.