The Kiwi was sharply lower following an earthquake that measured 6.3 on the Richter scale and sent buildings tumbling. The NZD/USD is currently testing the 0.7500 support line. A move below this level could trigger further selling to the 0.7350 mark.
Commodities such as gold, silver, and crude oil are higher across the board following violence in Libya, Bahrain, Yemen, and Iran, with increased risk of protests spreading to other nations in the region.
Today’s calendar events:
GBP – Public Sector Net Borrowing – 09:30 GMT
Expectations: -0.2B. Previous: 15.3B.
Increasing expectations of an interest rate hike by the BOE have the pound performing well against the US dollar. Strong bids for the currency should continue in the near term. Resistance for the GBP/USD is 1.6270. Support is Friday’s low of 1.6150.
CAD – Core Retail Sales – 13:30 GMT
Expectations: 0.7%. Previous: 1.0%.
The Canadian dollar is receiving more bids given its close correlation to oil prices which are at a 2.5 year high. Support for the USD/CAD is found at this year’s low of 0.9810. Resistance comes in at 0.9980.
USD – CB Consumer Confidence – 15:00 GMT
Expectations: 65.1. Previous: 60.6.
The dollar is up sharply in today’s morning trade. The EUR/USD has support and resistance that comes in at 1.3580 and 1.3740. A move lower could trigger stop losses and target the February low of 1.3430.
