Daily Forex Analysis - 02 March 2021

USD Overview (02 March 2021)

Yesterday, USD strengthened against most major currencies except AUD, NZD and CAD.

The ISM Manufacturing PMI data (Actual: 60.8, Forecast: 58.7, Previous: 58.7) released yesterday indicated an increase in the rate of expansion of the manufacturing sector in February.

NZD/USD Outlook (02 March 2021)

Overall, NZD/USD is ranging across.

The New Zealand Building Consents m/m data (Forecast: NA, Previous: 4.9%) will be released tomorrow at 0545 (SGT).

Currently, NZD/USD is bouncing off the resistance zone of 0.72850 and the next support zone is at 0.71000.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (02 March 2021)

Overall, AUD/USD is ranging across.

The Reserve Bank of Australia (RBA) will be announcing their monetary policy decision later at 1130 (SGT). It is likely that the central bank will keep interest rate and monetary policy unchanged since it has already announced a second round of bond-buying in mid-April during its previous meeting last month. Also, the RBA announced yesterday that it plans to purchase more than $3 billion of longer-term securities. Nonetheless, focus on the central bank‘s view on Australia’s economic recovery.

The Australian GDP q/q data (Forecast: 2.4%, Previous: 3.3%) will be released tomorrow at 0830 (SGT).

Currently, AUD/USD is bouncing off the resistance zone of 0.77900 and the next support zone is at 0.76000.

If the RBA sends out any signs of dovishness, look for selling opportunities of AUD/USD.

USD/JPY Outlook (02 March 2021)

Overall, USD/JPY is trending upwards.

Currently, USD/JPY is moving towards the key level of 107. Its next support zone is at 106.000 and the next resistance zone is at 107.900.

Look for buying opportunities of USD/JPY if it breaks above the key level of 107.

EUR/USD Outlook (02 March 2021)

Overall, EUR/USD is ranging across.

During a virtual conference yesterday, European Central Bank President Christine Lagarde highlighted that the COVID-19 pandemic is still “weighing heavily” on the eurozone economy.

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

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

- Core CPI Flash Estimate y/y (Forecast: 1.1%, Previous: 1.4%)

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for selling opportunities of EUR/USD.

GBP/USD Outlook (02 March 2021)

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

Currently, GBP/USD is testing to break below the key level of 1.39. Its next support zone is at 1.37800 and the next resistance zone is at 1.40000.

Look for short-term selling opportunities of GBP/USD if it breaks below the key level of 1.39.

USD/CAD Outlook (02 March 2021)

Overall, USD/CAD is trending downwards.

The Canadian manufacturing PMI data (Actual: 54.8, Forecast: NA, Previous: 54.4) released yesterday indicated that the Canadian manufacturing sector continued to expand in February at a rate similar to the previous month.

The Canadian GDP m/m data (Forecast: 0.1%, Previous: 0.7%) will be released later at 2130 (SGT).

USD/CADs next support zone is at 1.26100 and the next resistance zone of 1.28500.

Look for short-term buying opportunities of USD/CAD.

GBP/JPY Outlook (02 March 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced down from the key level of 149.

GBP/JPYs next support zone is at 147.800 and the next resistance zone is at 149.800.

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

EUR/JPY Outlook (02 March 2021)

Overall, EUR/JPY is trending upwards.

During a virtual conference yesterday, European Central Bank President Christine Lagarde highlighted that the COVID-19 pandemic is still “weighing heavily” on the eurozone economy.

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

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

- Core CPI Flash Estimate y/y (Forecast: 1.1%, 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.