Quick Perspective for the Day
The main highlight will be the Central Bank watch Global yields have dropped along with commodity prices, restraining the trio of Australian, Canadian, and New Zealand Dollars
At most a hawkish tone concerning the housing market, the May RBNZ meeting is unlikely to produce any meaningful changes.
There is a near-term bullish outlook for the commodity currencies.
Starting with the Technical Analysis
EURUSD is overall giving bullish trend, the german Business Climate data released yesterday indicated that the responses of the survey are more optimistic on Business condition in the country. The next support zone is at 1.21500 and the next resistance zone is at 1.23200, giving buying opportunities to investors.
AUDUSD is now heading towards 0.7800, following RBNZ’s status quo. The 2-week old descending trend line is now cleared, giving short-term buyers hope. Even so, Aussie needs to break the 0.7700-7820 trading range to portray any decisive moves. Overall, AUD/USD is ranging across, giving the next support zone to 0.75500 and resistance at 0.78000
The USDJPY pair remains reclusive to gain any momentum today. The selling pressure of the dollar picked up the pace during the early European session and dragged the pair to two-week lows, around 108.55 regions in the past hour. overall it is trending upwards giving the key level of 109, next support zone is 108.500 and resistance zone 110.800, look for buying opportunities above the key level of 109
The reserve bank of New Zealand will be announcing its monetary policy decision later at 1000 (SGT). Pay attention to whether the bank is considering cutting back on quantitative easing and their views on the economy, during this time there may be volatility in the Kiwi dollar. looking out to the next support zone at 0.71000 and the next resistance zone at 0.72850. If RBNZ mentions the potential cutting back of quantitative easing as mentioned earlier, then look for buying opportunities for NZDUSD.