Market movers

During the upcoming trading week, the United States economy and the Reserve Bank of New Zealand interest rate decision takes center stage. The United States economy releases a number of key data points through the course of the week, including manufacturing, inflation, trade, growth, housing, and consumer confidence. The RBNZ also decides on rates, with most economists expected that that central bank will leave New Zealand’s benchmark interest rate unchanged.

This week we also see a raft of September PMI readings coming from the eurozone economy and key IFO survey data from the German economy. Traders and investors will also be looking towards the latest Sino-US and Brexit developments.

Monday 23rd September, US Manufacturing PMI

The United States Manufacturing PMI reports on Manufacturing activity inside the American economy and represents economic indicators derived from monthly surveys of private sector companies. PMI data provides advance insight into the private sector economy by tracking variables such as output, new orders, employment and prices across these key sectors.

• The USDJPY pair is bullish while trading above the 107.30 level, key resistance is found at the 108.47 and 108.80 levels.
• If the USDJPY pair moves below the 107.30 level, sellers are likely test towards the 106.90 and 106.00 support levels.

Tuesday 24th September, German IFO Survey

The German IFO Survey is comprised of three components, the Current Assessment Survey, Business Climate Survey, and the Business Expectations Survey. The IFO Survey is a widely observed early indicator of the overall health of the economy. Traders and Investors pay close attention to the IFO Survey, as it can be a leading indicator for current and future trends developing in the German economy.

• The EURUSD is only bearish while trading below the 1.0980 level, key support is found at the 1.0925 and 1.0880 levels.
• If the EURUSD pair moves above the 1.0980 level, buyers will likely test towards the 1.1110 and 1.1160 resistance levels.

Wednesday 25th September, RBNZ Interest Rate Decision

The RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand and is then closely followed by the release of the central bank’s monetary policy statement. Most economists are expecting that the Reserve Bank of New Zealand will keep interest rates unchanged, following a series of dovish policy statements and recent interest rates cuts during the course of this year already.

• The NZDUSD pair is only bearish while trading below the 0.6480 level, key support is found at the 0.6290 and 0.6250 levels.
• If the NZDUSD pair moves above the 0.6480 level, buyers will likely test towards the 0.6570 and 0.6630 resistance levels.

Thursday 26th September, US Core PCE

The US Core PCE Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.

• The USDCAD pair is only bullish while trading above the 1.3290 level, further upside towards the 1.3350 and 1.3380 resistance levels seems possible.
• If the USDCAD pair trades below the 1.3290 level, sellers are likely test towards the 1.3150 and 1.3000 support levels.

Friday 27th September, US Durable Goods Orders

US Durable Goods Orders is a government report and is released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to monthly volatility as US consumers may delay purchases of durable items such as cars and televisions and choose to only spend money on necessities in times of economic hardship.

• The USDCHF pair is only bullish while trading above the 0.9950 level, further upside towards 1.0100 and 1.0150 levels remains possible.
• If the USDCHF pair trades below the 0.9950 level, sellers are likely to test the 0.9850 and 0.9770 support levels.