Daily Forex Analysis - 1 April 2021

USD Overview (01 April 2021)

Yesterday, USD strengthened against most major currencies except GBP, EUR and CAD.

The ADP Non-Farm Employment Change data (Actual: 517K, Forecast: 522K, Previous: 176K revised from 117K) released yesterday indicated a strong increase in the number of jobs in February driven by the increase in jobs in the leisure and hospitality sector as the economy reopens gradually.

U.S. President Joe Biden announced his $2 trillion infrastructure plan yesterday. This plan will fund the revamping of transportation infrastructure, job training efforts and provide care for the elderlies etc. The spending of the $2 trillion will require a hike in corporate tax rate to 28%.

The ISM Manufacturing PMI data (Forecast: 61.5, Previous: 60.8) will be released later at 2200 (SGT).

The non-farm payroll report will be released tomorrow at 2030 (SGT).

- Average Hourly Earnings m/m (Forecast: 0.1%, Previous: 0.2%)

- Non-Farm Employment Change (Forecast: 652K, Previous: 379K)

- Unemployment Rate (Forecast: 6.0%, Previous: 6.2%)

As it is Good Friday tomorrow, expect lower trading volatility and volume during the usual U.S. market hours.

NZD/USD Outlook (01 April 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USD bounced down from the key level of 0.70.

New Zealand banks will be closed tomorrow in observance of Good Friday. Expect lower trading volatility and volume during the usual New Zealand market hours.

NZD/USDs next support zone is at 0.67900 and the next resistance zone is at 0.71000.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (01 April 2021)

Overall, AUD/USD is trending downwards.

The Australian Retail Sales m/m data (Actual: -0.8%, Forecast: -1.1%, Previous: 0.4% revised from -1.1%) released earlier today indicated a decline in consumer spending in February.

Australian banks will be closed tomorrow in observance of Good Friday. Expect lower trading volatility and volume during the usual Australian market hours.

Currently, AUD/USD is testing the support zone of 0.76000 and the next resistance zone is at 0.78000.

Look for selling opportunities of AUD/USD if it breaks the support zone of 0.76000.

USD/JPY Outlook (01 April 2021)

Overall, USD/JPY is trending upwards.

USD/JPYs next support zone is at 110.200 and the next resistance zone is at 112.000.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (01 April 2021)

Overall, EUR/USD is trending downwards.

The eurozone CPI flash estimate y/y data released yesterday indicated an increase in inflation in March. Without factoring in energy prices, inflation declined slightly.

- CPI Flash Estimate y/y (Actual: 1.3%, Forecast: 1.4%, Previous: 0.9%)

- Core CPI Flash Estimate y/y (Actual: 0.9%, Forecast: 1.1%, Previous: 1.1%)

Earlier today, it was announced that France will be starting a four-week nationwide lockdown on this coming Saturday.

As it is Good Friday tomorrow, expect lower trading volatility and volume during the usual European market hours.

Currently, EUR/USD is moving towards the key level of 1.17. Its next support zone is at 1.16300 and the next resistance zone is at 1.17900.

Look for selling opportunities of EUR/USD.

GBP/USD Outlook (01 April 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD trended into the resistance zone of 1.38000.

The UK Final GDP q/q data (Actual: 1.3%, Forecast: 1.0%, Previous: 1.0%) released yesterday indicated an upwards revision in the level of economic growth during the fourth quarter of 2020.

UK banks will be closed tomorrow in observance of Good Friday. Expect lower trading volatility and volume during the usual London market hours.

Currently, GBP/USD is testing the resistance zone of 1.38000 and the next support zone is at 1.36000.

Look for selling opportunities of GBP/USD if it rejects the resistance zone of 1.38000.

USD/CAD Outlook (01 April 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD rejected the resistance zone of 1.26100.

The Canadian GDP m/m data (Actual: 0.7%, Forecast: 0.5%, Previous: 0.1%) released yesterday indicated an increase in economic growth in January.

Earlier today, it was reported that the Canadian province of Ontario will be going into lockdown for 28 days starting from this Saturday in an effort to contain the COVID-19 virus.

OPEC-JMMC meetings will be held today.

The Canadian Manufacturing PMI data (Forecast: NA, Previous: 54.8) will be released later at 2130 (SGT).

Currently, USD/CAD is moving towards the resistance zone of 1.26100 and the next support zone is at 1.23800.

Look for buying opportunities of USD/CAD if it breaks the resistance zone of 1.26100.

GBP/JPY Outlook (01 April 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY trended into the resistance zone of 152.600.

The UK Final GDP q/q data (Actual: 1.3%, Forecast: 1.0%, Previous: 1.0%) released yesterday indicated an upwards revision in the level of economic growth during the fourth quarter of 2020.

UK banks will be closed tomorrow in observance of Good Friday. Expect lower trading volatility and volume during the usual London market hours.

Currently, GBP/JPY is testing the resistance zone of 152.600 and the next support zone is at 150.000.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 152.600.

EUR/JPY Outlook (01 April 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY bounced down from the key level of 130.

The eurozone CPI flash estimate y/y data released yesterday indicated an increase in inflation in March. Without factoring in energy prices, inflation declined slightly.

- CPI Flash Estimate y/y (Actual: 1.3%, Forecast: 1.4%, Previous: 0.9%)

- Core CPI Flash Estimate y/y (Actual: 0.9%, Forecast: 1.1%, Previous: 1.1%)

Earlier today, it was announced that France will be starting a four-week nationwide lockdown on this coming Saturday.

As it is Good Friday tomorrow, expect lower trading volatility and volume during the usual European market hours.

EUR/JPYs next support zone is at 128.500 and the next resistance zone is at 130.500.

Look for selling opportunities of EUR/JPY.