NZDCAD is the currency pair that may see some moves in the coming hours. Release of Canadian CPI data for January, scheduled for 1:30 pm GMT today, is likely to trigger some CAD-volatility. Data is expected to show deceleration in headline price growth from 6.3 to 6.1% YoY. Simultaneously to CPI reading, Canadian retail sales print for December will be released and is expected to show an increase, following last month's headline drop.
Another source of volatility for the pair will be the rate decision announcement from the Reserve Bank of New Zealand that will come at 1:00 am GMT on Wednesday. Majority of economists expected a 50 basis point rate hike but there is some concern that RBNZ may slow the pace of or even pause rate hikes following a recent cyclone hit that has caused significant damage across the country. While 25 bp rate hike could be on the table, a pause seems unlikely. RBNZ, however, is likely to send a cautious message and communicate that it will wait with taking any bigger actions until the better extent of the damage is estimated.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appTuesday, 1:30 pm GMT - Data from Canada
-
CPI inflation for January. Expected: 6.1% YoY. Previous: 6.3% YoY
-
Headline retail sales for December. Expected: +0.5% MoM. Previous: -0.1% MoM
-
Retail sales ex-autos for December. Expected: 0.0% MoM. Previous: -0.6% MoM
Wednesday, 1:00 am GMT - Reserve Bank of New Zealand rate decision
Taking a look at NZDCAD chart at D1 interval, we can see that the pair has recently halted upward move and started to pull back. Pair dropped to the lowest level since late-November 2022 but it looks like a bottom of the current downward impulse may have been found at 38.2% retracement in the 0.8350 area. The pair has been struggling to break below this area in recent days and should RBNZ go on with a 50 bp rate hike and commit to its hawkish stance, a recovery move could be launched.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
