NZDUSD continues to show bullish momentum
FOREX.com November 20, 2020 11:39 AM
The uptrend prevails, if resistance at 0.695 can be broken next week.
The US Dollar was mixed against all of its major pairs on Friday.
On Monday, Markit's US Manufacturing Purchasing Managers' Index for the November preliminary reading is expected to slip to 53.0 on month, from 53.4 in the October final reading.
The Euro was bearish against all of its major pairs. In Europe, the European Commission has released November Consumer Confidence Index at -17.6 (-18.0 expected). Separately, the U.K. Office for National Statistics has reported October retail sales at +1.2% (vs -0.3% on month expected), the November Gfk Consumer Confidence was reported at -33, vs -34 expected and the October Public Sector Net Borrowing was released at 22.3 billion pounds deficit, 31.5 billion pounds expected. Also, in Germany, October PPI was released at +0.1%, vs +0.4% the previous month.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD.
Regarding the week's U.S. economic data front:
Initial Jobless Claims unexpectedly rose to 742K for the week ending November 14th (700K expected), from a revised 711K in the week before. Continuing Claims fell to 6,372K for the week ending November 7th (6,400K expected), from a revised 6,801K in the prior week.
The Leading Index rose 0.7% on month in October (as expected), in line with September.
Existing Homes Sales jumped to 6.85M on month in October (6.47M expected), from a revised 6.57M in September, a level last reached in 2006. The Mortgage Bankers Association's Mortgage Applications declined 0.3% for the week ending November 13th compared to -0.5% in the previous week. Housing Starts spiked to 1,530K on month in October (1,460K expected), from a revised 1,459K in September.
Retail Sales Advance rose 0.3% on month in October (+0.5% expected), compared to a revised +1.6% in September.
Industrial Production increased 1.1% on month in October (+1.0% expected), compared to a revised -0.4% in September.
Empire Manufacturing unexpectedly dropped to 6.3 on month in November (13.5 expected), from 10.5 in October.
One of the week's largest gainers was the NZD/USD which climbed 1.41% or 93 pips.
The Kiwi has shown continued upside momentum after breaking above a diamond continuation pattern. Price action is testing key resistance at the 0.695 level from back in March of 2019. As long as 0.6675 can hold as support and the pair can close above 0.694, look towards a continuation towards 0.7065 resistance and the uptrend to continue.
Source: GAIN Capital, TradingView
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