NZDUSD surpasses 70 cents as the uptrend continues
Gary Christie November 24, 2020 4:23 PM
The pair has not broken 0.70 since June of 2018.
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, the Conference Board's Consumer Confidence Index fell to 96.1 on month in November (98.0 expected), from a revised 101.4 in October.
Wednesday will be a busy day regarding U.S. Eco data ahead of the Thanksgiving holiday Thursday where U.S. markets will be closed.
We can expect the Mortgage Bankers Association's Mortgage Applications data for the week ending November 20th.
Initial Jobless Claims for the week ending November 21st are expected to fall to 730K, from 742K in the week before. Continuing Claims for the week ending November 14th are expected to decline to 6,000K, from 6,372K in the prior week.
Wholesale Inventories for the October preliminary reading are expected to rise 0.4% on month, in line with the September final reading.
GDP for the third quarter second reading is expected to remain at +33.1% on quarter, in line with the third quarter advanced reading. Durable Goods Orders for the October preliminary reading are expected to increase 0.9% on month, compared to +1.9% in the September final reading.
Personal Income for October is expected to be unchanged on month, compared to +0.9% in September. Personal Spending for October is expected to rise 0.4% on month, compared to +1.4% in September.
The University of Michigan's Consumer Sentiment Index for the November final reading is expected to remain at 77.0 on month, in line with the November preliminary reading. New Home Sales for October are expected to rise to 975K on month, from 959K in September.
Finally, the Federal Open Market Committee's Meeting Minutes are expected.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the German Federal Statistical Office has posted final readings of 3Q GDP at +8.5% (vs +8.2% on quarter expected). Germany's IFO Business has released November Climate Index at 90.7 (vs 90.3 expected) and Expectations Index at 91.5 (vs 93.5 expected). Also, France's INSEE has reported November indicators on business confidence at 79 (vs 84 expected) and manufacturing confidence at 92 (vs 91 expected).
The Australian dollar was bullish against all of its major pairs.
Looking at active pairs, the NZDUSD broke above our first resistance target as the pair continues its uptrend. On a daily chart, look for the 20-day moving average to act as support. The next major levels to watch on the upside are 0.7065 and 0.7150.
Source: GAIN Capital, TradingView
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