|

Forex Today: Kiwi slumps in Asia, NZ retail trade ignored, Eyes on EZ CPI

Forex today witnessed the resurgence of the US dollar demand across the board, prompting most majors to pause their relief rally, as Treasury yields regained poise, after a brief correction, ahead of the Fed’s bi-annual monetary policy report due for release later on Friday. The Kiwi emerged the biggest loser, despite a better-than-expected NZ retail sales report and stabilizing oil prices while its OZ counterpart, the Aussie, traded with mild losses below the 0.7850 barrier. USD/JPY’s tepid bounce ran into offers at the 107 handle that left the rates in a phase of consolidation over the last hours.

Among other related markets, the Asian equity markets traded with modest gains, as investors continue to remain wary over the Fed’s outlook on normalization. Meanwhile, the yellow metal remained on the back foot near $ 1330 levels amid higher Treasury yields.

Main topics in Asia

NZ retail sales volumes were stronger than expected in Q4 - ANZ

Analysts at ANZ noted that the NZ retail sales volumes were stronger than expected in Q4, with retail discounting – especially across big-ticket items – continuing to have a key influence. 

ECB's Smets: Euro strength "point of attention" for ECB - Reuters

More comments being reported by Reuters from the European Central Bank's council member and Belgian central bank governor Jan Smets following a brief talk earlier with Bloomberg reporters.

Japan National Consumer Price Index (YoY) above forecasts (1.3%) in January: Actual (1.4%)

Trump policies to boost wages without inflation - US Treasury Secretary Mnuchin

Trump policies will push up wages but won't have a big impact on inflation said US Treasury Secretary Mnuchin, according to Bloomberg. 

Fitch affirms ratings of Australia's big 4 banks Ratings agency Fitch has affirmed the ratings of Australia's four major banks …

Theresa May reverses stances on EU migrants post-Brexit - The Times

Prime Minister Theresa May recently signaled a reversal on a key Brexit policy regarding the future of EU migrants within the UK during the Brexit transition period, as reported by The Times in London.

United States to hit North Korea with large package of new sanctions on Friday - Senior US Official

Key Focus ahead

Another busy session will mark the end of an eventful macro week, with the German final GDP release awaited pre-Europe open. Traders look forward to the Eurozone final CPI data and informal meeting of EU heads of State Council for fresh cues on the EUR trades while the BOE MOC member Ramsden’s speech will be closely eyed by the GBP markets.

Moving on, the main risk event for the NA session today remains the Canadian CPI releases while the FOMC member Dudley’s speech will also garner some attention ahead of the Fed’s bi-annual monetary policy report.

EUR/USD - Monetary pol divergence favors deeper correction

The European Central Bank (ECB) and the Federal Reserve (Fed) minutes released this week showed growing policy divergence between these central banks.

GBP/USD preparing to take another run at 1.4, but Brexit continues to weigh

GBP/USD is being weakened from within thanks to a recent decline in household spending, adding credence to recent fears that inflation has already begun eating away at consumer's ability to spend, as well as continued infighting with the UK's parliament …

Europe: Key events ahead - Barclays

The Barclays Research Team enlists the key events worth looking forward to in the European session today.

Canada’s Jan CPI: Core inflation to remain muted – Capital Economics

Analysts at Capital Economics offer a sneak peek on what to expect from today’s Canadian inflation report slated for release at 1330 GMT.

Key Events: 

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Feb 19
24h
 
 
24h
 
 
24h
 
 
Tuesday, Feb 20
24h
 
 
Friday, Feb 23
24h
 
 
07:00
 
2.9%
2.9%
07:00
 
0.6%
0.6%
07:00
 
2.3%
2.3%
10:00
 
1%
1%
10:00
 
-1.6%
0.4%
10:00
 
-1.5%
0.5%
10:00
 
1.3%
1.3%
12:00
 
 
13:30
 
 
0.1%
13:30
 
1.4%
1.9%
13:30
 
0.7%
-0.5%
13:30
 
1.2%
1.2%
13:30
 
0.4%
-0.4%
n/a
 
 
15:15
 
 
18:00
 
 
798
18:30
 
 
18:30
 
 
20:30
 
 
$175.6K
20:30
 
 
712.3K
20:30
 
 
$179K
20:30
 
 
£14.9K
20:30
 
 
¥-115.5K
20:30
 
 
€127.3K
20:30
 
 
$9.1K

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD clings to small gains near 1.1750

Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.

GBP/USD remains confined in a range above mid-1.3300s ahead of UK jobs report

The GBP/USD pair extends its sideways consolidative price move through the Asian session on Tuesday and currently trades around the 1.3370-1.3365 region, nearly unchanged for the day. Traders seem reluctant and opt to wait for this week's important macro releases and the key central bank event risk before placing fresh directional bets.

Gold defends $4,300 as focus shifts to US NFP, PMI data

Gold price holds the $4,300 level, easing from the highest since October 21 in the Asian trading hours on Tuesday. The precious metal stays afloat on further US Federal Reserve rate cut bets. The US Nonfarm Payrolls report will take center stage later on Tuesday. Also, the US Retail Sales and Purchasing Managers Index will be published. 

Top Crypto Losers: Aster, Midnight, and Ethena extend losses as selling pressure mounts

Aster, Midnight, and Ethena are the altcoins with the most losses over the last 24 hours, as the broader cryptocurrency market weakens amid Bitcoin dropping below $86,000.

NFP preview: Complex data release will determine if Fed was right to cut rates

The long wait is over, and the Bureau of Labor Statistics in the US will release nonfarm payrolls reports for both November and October at 1330 GMT on Tuesday. The overall NFP figure for October is expected to be -10k, however, it is expected to be influenced by a massive 130k drop in federal department workers. 

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.