YWU CAD/CHF Knocking On Short-term Resistance Level Ahead Of Canadian CPI Report!
Will the bears rush to sell the Canadian dollar today? Or will CAD/CHF see a bullish breakout?
Before we go any further, ICYMI, yesterday’s watchlist looked at the intraday pullback in AUD/JPY before the RBA minutes were released. Be sure to check if it’s still a good game!
And now for the main headlines that rocked the markets in the last trading sessions:
Headlines and recent economic data for the market:
New York Manufacturing Index For July: 1.1 (-6.0 predicted; 6.6 prior); The personnel index rose to 4.7 from -3.6 previously; The prices paid index decreased to 16.7 from 22.0 previously
Although she does not expect a recession in the United States, Treasury Secretary Janet Yellen He warned that the economic downturn in China could have an impact on the entire global economy
Minutes of the Reserve Bank of Australia meeting in July It showed that the Fed agreed that “further tightening may be needed” and hints to revisit the rate hike move at the August meeting.
Bloomberg reports possible Capital provision changes by the Fed, the FDIC, and the OCC It could increase total capital requirements for US banks by 20%.
Price action news
The New Zealand dollar was the biggest loser today as traders priced in the weak Chinese data from Monday. Janet Yellen warns that China’s vulnerabilities could spread to other economies.
It also didn’t help that some NZD buyers remained neutral ahead of the New Zealand CPI report and US retail sales and earnings releases.
The New Zealand dollar lost even against other currencies, and it is recording new lows during the day on all levels, after breaking its lowest levels in the American session at the beginning of European trading.
Housing in Canada starts at 12:15pm GMT
Canada releases CPI data at 12:30 PM GMT
US Retail Sales at 12:30pm GMT
US Industrial Production at 1:15pm GMT
NAHB Housing Market Index at 2:00 pm GMT
AU CB Leading Indicator at 2:30pm GMT
New Zealand Quarterly CPI at 10:45pm GMT
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CAD/CHF currencies for 15 minutes Planned by TV
Hola if you are trading Canadian doll!
CAD/CHF is bouncing back from the 0.6490 area, which is not surprising since the area marks yesterday’s low and S1 (.6490) for today’s pivot points.
Can the Canadian dollar find enough buyers to sustain the bullish reversal? The Loonie’s reaction to the Canadian CPI report could offer clues.
If Canadian consumer prices come in higher than expected, the Canadian dollar could receive a boost from the BoC’s hawkish outlook.
CAD/CHF could break above the Simple Moving Averages and head to the 0.6540 line near the “neckline” of a potential double bottom.
But if Canadian CPI is weaker in June as markets expected, CAD/CHF could revisit its weekly lows below 0.6500.