Yooo CAD/CHF is knocking on a short-term resistance level ahead of Canada’s CPI report!
Will bears rush to sell CAD today? Or will CAD/CHF see an upside breakout?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/JPY’s intraday downswing before the RBA meeting minutes release. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
NY Manufacturing Index for July: 1.1 (-6.0 forecast; 6.6 previous); employees index popped to 4.7 from -3.6 previous; prices paid index fell to 16.7 vs. 22.0 previous
Although she doesn’t anticipate a recession in the U.S., Treasury Secretary Janet Yellen warned that China’s economic downturn risks having an impact on the entire global economy
RBA’s July meeting minutes showed that the Board agreed that “some further tightening may be required” and hints at revisiting the rate hike move at the August meeting
Bloomberg reports possible capital rule changes by the Fed, FDIC, and OCC that could increase the U.S. banks’ overall capital requirements by 20%
Price Action News
The New Zealand dollar was the biggest loser today as traders priced in China’s weak data from Monday. Janet Yellen’s warnings that weaknesses in China could ripple onto other economies.
It also didn’t help that some NZD buyers are staying in the sidelines ahead of New Zealand’s CPI report and the U.S. retail sales and earnings releases.
NZD lost even against fellow comdolls and is making new intraday lows across the board after breaking below its U.S. session lows at the start of European trading.
Canada’s housing starts at 12:15 pm GMT
Canada’s CPI reports at 12:30 pm GMT
U.S. retail sales at 12:30 pm GMT
U.S. industrial production at 1:15 pm GMT
U.S. NAHB housing market index at 2:00 pm GMT
AU CB leading index at 2:30 pm GMT
NZ quarterly CPI at 10:45 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
Holla if you’re trading the Canadian dollah!
CAD/CHF is bouncing from the .6490 zone, which isn’t surprising since the area marks yesterday’s low and the S1 (.6490) of today’s Pivot Points.
Can CAD find enough buyers to sustain a bullish reversal? The Loonie’s reaction to Canada’s CPI report could offer clues.
If Canada’s consumer prices come in higher than expected, then CAD could receive a boost from hawkish BOC expectations.
CAD/CHF could break above the SMAs and head for the .6540 line near a potential Double Bottom “neckline.”
But if Canada’s CPI comes in weaker in June as markets had expected, then CAD/CHF could revisit its weekly lows below .6500.