Morning Preview: USD Gaining Ground as RBNZ is in Focus

Morning Traders,

If you’re in Asia, then once again we are faced with another pretty thing calendar. However, it is RBNZ interest rate decision time. No one is expecting much of a change to the current policy and if it’s anything like the RBA yesterday, then moves will probably be a little muted.

I’m bearish on the Kiwi, as I am with the Aussie, and any move higher might be an opportunity to be a seller. We got a little pop yesterday in the AUD and that turned out to be a good time to take on a short position as we subsequently sold off during the US session.

Elsewhere, the EUR/USD is doing it’s best to break lower, while the Yen is still wanting to have a crack at overhead resistance. Gold made a big slide and our Forex Signal subscribers were lucky enough to pull in yet another winning trade in the yellow metal.

Much of the overnight action was thanks to the USD gaining some ground. IT once again pushed back up towards the 95.00 level that it’s been battling on the US Dollar Index (DXY). This was the third failed attempt in the last few weeks and I think it’s only a matter of time until we break out. With the US Federal Reserve getting set to hike rates, I think we will break out in the next week or two.

That means more weakness for the majors against the USD and I would be positioning myself accordingly.

US Dollar Index (DXY) – 240 min Chart.

Top Economic Data This Week

Wednesday

NZD – RBNZ Interest Rate Decision

Friday

GBP – Manufacturing Production