Forex News for 28 Feb, 2023
February 28, 2023
- The coming week will be quieter in terms of top-tier economic releases, but traders should still keep an eye on potential market movers that could create volatility in the markets.
- Australia and the eurozone will release CPI figures that provide insight into the state of inflation in these regions and can impact currency pairs and other financial assets.
- The mid-tier US durable goods orders release usually doesn’t create significant market movements, but the lack of other significant dollar catalysts during the week might generate a reaction from traders.
- The flat reading in Canada’s monthly GDP growth figure could add up to a not-so-stellar Q4 2022 result, which could impact Loonie traders and remind them that the BOC is set on pausing its tightening cycle soon.
- Australia’s quarterly CPI figure is an essential economic release for traders to watch. The result is expected to show a slower pace of price pressures, which could lead to doubts about the RBA’s ability to make more rate hikes in the future.
- The Eurozone’s inflation figures are crucial for ECB officials, who have been discussing the need to keep hiking rates aggressively. The preview of the region’s inflation figures could support their hawkish views, but a dip in headline CPI is expected.
- The release of Australia’s quarterly CPI and GDP figures will provide some volatility for AUD pairs this week. These figures can impact currency pairs and other financial assets and are essential for traders to watch.
- AUD/JPY is showing a rising wedge pattern, indicating that it may be about to break lower. Disappointing inflation and growth figures could cause a sharp drop below the wedge support, followed by a selloff that’s the same height as the chart pattern.
- Upside surprises in the inflation and growth figures could reaffirm the view that the RBA can afford to hike at least a couple more times, leading to a bounce back up to the top of the wedge around the 94.00 major psychological resistance. Technical indicators suggest that more gains may be on the horizon, as the 100 SMA is above the 200 SMA, while Stochastic is pulling higher from oversold levels