The NZDUSD pair was little changed in early trading as investors reacted to the latest New Zealand trade numbers. According to the country’s statistics agency, total exports rose from N$5.85 billion in May to N$5.95 billion in June. In the same period, the total imports rose from N$5.4 billion to more than N$5.69 billion. As a result, the total trade surplus narrowed from N$489 million to N$269 million. These numbers provide further evidence that the country’s economy is doing well, helped by strong external and internal demand. Meanwhile, the Reserve Bank of New Zealand (RBNZ) stopped its asset-purchase program on Friday, becoming the first major bank to exit its pandemic QE program.
The US dollar tilted upwards while American futures declined after worrying Covid numbers from the US. Data published by states showed that the total number of new infections has risen sharply in the past few weeks. Meanwhile, corporate earnings will continue this week. The top companies to watch will be Check Point Software, Lockheed Martin, Tesla, and Axalta Coating Systems.
The EURUSD pair was little changed ahead of the latest German business sentiment data. Economists expect that the German business expectations fell from 104 to 103.3 while the current assessment rose from 99.6 to 101.6. Business climate, on the other hand, is expected to fall from 101.8 to 102.1. The data will come as Germany considers more restrictions to curb the virus. The pair will react to the latest new home sales data from the US. Sales are expected to have risen from 769k to 800k.
EURUSD
The EURUSD pair is little changed ahead of the German sentiment and US new home sales numbers. It is trading at 1.1775, where it has been in the past few weeks. On the four-hour chart, the pair has formed a falling wedge pattern, which is usually a bearish sign. Oscillators like the Relative Strength Index (RSI) and the MACD are at the neutral level. Therefore, the pair will likely remain in the current range as investors wait for the FOMC decision scheduled for Wednesday.
AUDNZD
The AUDNZD pair is hovering near the lowest level in several months after the latest New Zealand trade numbers. On the four-hour chart, the pair has formed a double-bottom pattern, which is usually a bullish sign. The neckline of this pattern is at 1.0610. On the four-hour chart, the pair moved below the 25-day moving average while the Relative Strength Index (RSI) has dropped to 38. The pair will likely bounce back later this week.
EURGBP
The EURGBP pair was also little changed today. It is trading at 0.8560, which is slightly above last week’s low of 0.8540. On the four-hour chart, the pair moved below the 25-day moving average and below the upper line of the descending channel. The Awesome Oscillator has also declined below the neutral line while the Relative Strength Index (RSI) has declined to 43. It has also formed a bearish flag pattern. Therefore, it will likely resume the downward trend as bears target the next key level at 0.8500.
