After two light days, today’s calendar is quite busy: a rate decision in New Zealand and the Federal Budget Balance are the highlights. Let’s see what’s awaiting us toady.
We’ve already see one hesitant break of the Australian dollar and we’ve seen the USD/CAD edge down, still not breaking 1.02. In these currencies, the action will probably be seen after they post employment data. OK, let’s start the review:
Australia’s Home Loans are predicted to rise by 2.1% after a sharp drop of 5.5%. This should help the Aussie make progress. For more on this strong currency, read the AUD/USD forecast.
German Final CPI will start a bunch of European events. It’s predicted to confirm the 0.2% rise that was initially reported. French Industrial Production is expected to rise by 0.3%, after dipping by 0.1% last month. The German figure disappointed earlier in this week.
Two speeches are due in Europe: Bundesbank president Axel Weber, possibly the next president of the ECB, will speak in Dublin and will probably move the Euro. The current ECB president, Jean-Claude Trichet, will later talk in the inauguration ceremony of “The Language of Money” exhibition, in Frankfurt and will also have his share of moving the currency.
In Britain, Manufacturing Production is expected to rise by 0.3%, much less than last month’s 0.9% rise. This will probably cause high volatility. Later in Britain, the NIESR GDP estimate will be released. It showed a rise of 0.4% in the three months ending in January. Will it continue to be optimistic?
More on the Pound’s technical levels can be found in the GBP/USD forecast.
In the US, the Federal Budget Balance is expected to show a huge deficit: 204 billion. This is about 5 times last month’s figure. It will probably weigh on the dollar.
New Zealand’s interest rate will probably remain at 2.5%. Alan Bollard, head of the RBNZ, isn’t expected to raise the interest rate, at least not this time. Will he do it sooner than others? That’s the big question that awaits kiwi traders. We’ll probably get information in the RBNZ Rate Statement and press conference.
Kathy Lien sees a short opportunity in AUD/NZD and generally sees a strong NZD/USD.
Japanese Final GDP closes the day. A downside revision from 1.1% to 1% is predicted. The Japanese yen lost some ground last week.
That’s it for today. Happy forex trading!
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