NZDUSD got rejected in its test of the descending triangle resistance and is now moving back to the bottom around the .6500 major psychological level. Whether a bounce or a break takes place depends on the outcome of the economic reports from New Zealand in the next few days.
China’s consumer price index (CPI), a main gauge of inflation, grew 1.2 percent year on year in May, the National Bureau of Statistics (NBS) said on Tuesday.
GBPUSD has been forming higher lows and finding resistance at the 2.1200 to 2.1300 levels, creating an ascending triangle pattern on its 1-hour chart.
The AUDUSD pair fell rather significantly the session before, but we did have a nice bounce and rise during the session on Wednesday.
The consumer price index (CPI), a main gauge of inflation, softened to a 2.3-percent year-on-year growth in June, triggering concerns of broader monetary policy easing as a whole-year outlook points to a soft inflation rate.
EURUSD is currently finding support at the bottom of the rising channel on the daily time frame while stochastic is indicating deeply oversold conditions.
NZD/USD is forming a rising channel on its 1-hour time frame, after having bounced off the bottom near the .8200 major psychological support.
Breaking News – U.S. economic Retail Sales reports and Consumer Price Index (CPI)
China’s June Consumer Price Index (CPI) and Producer Price Index (PPI) data release overnight are mixed.
Most of the major currency pairs continue to show significant correlations with the MSCI World Stock Index, suggesting that broad-based risk appetite trends remain dominant as drivers of price action. This puts thematic macro-level concerns – specifically, the durability of the US recovery and its ability to offset headwinds from Europe and China facing global growth – squarely at the forefront. The US economic calendar is relatively quiet, with headline event risk clustered at the end of the week as PPI and UofM Consumer Confidence readings cross the wires on Friday. This puts the onus on evaluating the extent of downward pressure.
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