Daily Forex Analysis - 23 February 2021

USD Overview (23 February 2021)

Yesterday, USD weakened against most major currencies except CAD.

Federal Reserve Chairman Jerome Powell will be testifying on the semiannual monetary policy report later at 2300 (SGT).

During this time, volatility in USD is expected.

The Conference Board Consumer Confidence data (Forecast: 90.2, Previous: 89.3) will be released later at 2300 (SGT).

NZD/USD Outlook (23 February 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced up from the support zone of 0.72850.

The New Zealand retail sales q/q data released earlier today indicated a decline in consumer spending during the last quarter of 2020.

- Retail Sales q/q (Actual: -2.7%, Forecast: -0.5%, Previous: 28.0%)

- Core Retail Sales q/q (Actual: -3.1%, Forecast: NA, Previous: 24.1%)

The Reserve Bank of New Zealand (RBNZ) will be announcing their monetary policy decision tomorrow at 0900 (SGT). It is expected that the central bank will be holding interest rate unchanged at 0.25%. Also, it is likely that the RBNZ will make no changes to its Large Scale Asset Purchase (LSAP) programme and Funding for Lending Programme (FLP). Nonetheless, pay attention to any mentioning of the adjustments of the stimulus measures and further interest rate cut.

The RBNZ will also be holding a press conference at 1000 (SGT). During this time, volatility in NZD is expected.

NZD/USDs next support zone is at 0.72850 and the next resistance zone is at 0.75300.

Look for short-term buying opportunities of NZD/USD up until the announcement of the monetary policy decision by the RBNZ.

AUD/USD Outlook (23 February 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD broke above the key level of 0.79.

AUD/USDs next support zone is at 0.77900 and the next resistance zone is at 0.80800.

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (23 February 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY trended downwards to the key level of 105.

Currently, USD/JPY is testing to break below the key level of 105. Its next support zone is at 104.600 and the next resistance zone is at 106.000.

Look for short-term selling opportunities of USD/JPY.

EUR/USD Outlook (23 February 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD trended into the resistance zone of 1.21500.

The German ifo Business Climate data (Actual: 92.4, Forecast: 90.5, Previous: 90.1) released yesterday indicated an increase in the level of optimism in the current business conditions and expectations for the next 6 months in Germany.

The eurozone final CPI y/y data will be released later at 1800 (SGT).

- Final CPI y/y (Forecast: 0.9%, Previous: 0.9%)

- Final Core CPI y/y (Forecast: 1.4%, Previous: 1.4%)

Currently, EUR/USD is testing the resistance zone of 1.21500 and the next support zone is at 1.19700.

Look for buying opportunities of EUR/USD if it breaks the resistance zone of 1.21500.

GBP/USD Outlook (23 February 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke the resistance zone of 1.40000.

Yesterday, UK Prime Minister Boris Johnson announced that non-essential shops and hospitality venues will be allowed to resume business on 12 April at the earliest.

The UK employment data will be released later at 1500 (SGT).

- Claimant Count Change (Forecast: TBA, Previous: 7.0K)

- Average Earnings Index 3m/y (Forecast: 4.1%, Previous: 3.6%)

- Unemployment Rate (Forecast: 5.1%, Previous: 5.0%)

Currently, GBP/USD is moving towards the key level of 1.41. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for buying opportunities of GBP/USD if it breaks the resistance zone of 1.43500.

USD/CAD Outlook (23 February 2021)

Overall, USD/CAD is ranging across.

Bank of Canada Governor Macklem will be speaking tomorrow at 0130 (SGT). During this time, there may be volatility in CAD.

Currently, USD/CAD is testing the support zone of 1.26100 and the next resistance zone is at 1.28500.

Look for short-term selling opportunities of USD/CAD if it breaks the support zone of 1.26100.

GBP/JPY Outlook (23 February 2021)

Overall, GBP/JPY is trending upwards.

Yesterday, UK Prime Minister Boris Johnson announced that non-essential shops and hospitality venues will be allowed to resume business on 12 April at the earliest.

The UK employment data will be released later at 1500 (SGT).

- Claimant Count Change (Forecast: TBA, Previous: 7.0K)

- Average Earnings Index 3m/y (Forecast: 4.1%, Previous: 3.6%)

- Unemployment Rate (Forecast: 5.1%, Previous: 5.0%)

Currently, GBP/JPY is testing the resistance zone of 147.800 and the next support zone is at 146.000.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 147.800.

EUR/JPY Outlook (23 February 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced down from the key level of 128.

The German ifo Business Climate data (Actual: 92.4, Forecast: 90.5, Previous: 90.1) released yesterday indicated an increase in the level of optimism in the current business conditions and expectations for the next 6 months in Germany.

The eurozone final CPI y/y data will be released later at 1800 (SGT).

- Final CPI y/y (Forecast: 0.9%, Previous: 0.9%)

- Final Core CPI y/y (Forecast: 1.4%, Previous: 1.4%)

EUR/JPYs next support zone is at 127.150 and the next resistance zone is at 129.500.

Look for short-term selling opportunities of EUR/JPY.