Morning Brief, Nov 7 – Top Forex Trade Setups, RBNZ in Highlights!
Arslan Butt • 2 min read
- Dollar weakens over investors’ caution as traders await US midterm elections.
- New Zealand’s labor market report showed remarkable improvement, extending strong gains.
- RBNZ Monetary policy statement remains in focus today.
- Trading NZD/USD today on RBNZ monetary policy decision.
On Wednesday, the dollar was down against the Euro and Yen on investor wariness as traders anticipated the US midterm election results for implications on Washington’s broader economic and political agenda.
The Democratic Party is assumed to gain control of the US House of Representatives, with Republicans seen fit to keep their majority in the Senate.
How does this impact US dollar?
- If the Democratic Party wins both houses, sentiment will turn risk off and we may see a strong dollar and strong Yen.
- If that does not happen, the sentiment will be risk off and the dollar will likely strengthen against the Yen and sold somewhat against other currencies.
NZD/USD – New Zealand Dollar on Rollercoaster Ride
New Zealand’s labor market report did remarkably well with the lowest unemployment rate in over 10 years and highest employment rate since Statistics New Zealand began the current employment series 30 years ago.
According to stats, the unemployment rate plunged to 3.9% from a revised 4.4% in the June quarter. While the employment change soared to 1.1% vs. 0.5% forecast.
Technically, the NZD/USD has violated the bearish channel on the daily timeframe at $0.6600 to trade near $0.6765. Here’s the thing – the bullish power is very strong and the pair may keep flying towards $0.6840. But, investor focus will also remain on the RBNZ monetary policy meeting today.
Daily Technical Levels
Key Trading Level: 0.671
NZD/USD – Market Sentiment
Weekly – Strong Buy
Daily – Strong Buy
Hourly – Buy
Reserve Bank of New Zealand – Monetary Policy Statement
The RBNZ (Reserve Bank of New Zealand) is due to release the official cash rate at 20:00 (GMT) today. As per economists’ forecast and market sentiments, the RBNZ is expected to keep it on hold at 1.75%.
Alongside the cash rate, the Rate Statement and RBNZ Monetary Policy Statement will be monitored.
The RBNZ Press Conference is also due at 21:00 (GMT), and I hope that RBNZ Governor Graeme Wheeler will speak about his future policy actions. That’s all for now, but stay tuned for live market updates and forex trading signals.
Good luck and keep following FX Leaders signals for another profitable day.