NZD/USD: the RBNZ decision updated the seven-year high in the pair
The New Zealand currency shows a slight strengthening during the Asian trading session, being at the level of 0.5800. The NZD/USD instrument has successfully updated the local maximum of September 23 due to the observant position of traders in the market, but they expect the publication of expanded statistics of the national labor market for September and hope to receive positive factors regarding plans from the US Federal Reserve to further tighten monetary parameters.
As expected, following a meeting of officials from the RBNZ (Reserve Bank of New Zealand) on Wednesday, the key indicator was increased by 50 percentage points, and the target value reached 3.5% after eight corrections over the past year, the peak of the indicator of the last seven years was updated to a number. As follows from the statement of the chairman of the financial department Adrian Orr, thanks to the "hawkish" rate, the regulator successfully maintains stable prices and supports the stability of the labor market. Analysts predict an increase in the interest rate at the next stage by another 0.50% following the results of the next meeting of participants of the Reserve Bank of New Zealand, announced for November with a probability of more than 60%.
Resistance levels: 0.5800, 0.5850, 0.5900, 0.5938.
Support levels: 0.5720, 0.5650, 0.5563, 0.5500.
USD/JPY: "American" expects positive incentives
The US dollar shows an ambiguous trend against the Japanese yen during the Asian trading session, testing the 144.50 mark. Economic data from the United States act as support for the quotations of the US currency, but the bulls are cautious at the level of a record high, since the next stage of currency intervention by the Bank of Japan may be leveled by their achievements.
In the previous week, the leadership of the Central Bank indicated the need to monitor fluctuations in the Japanese yen to determine the degree of its pressure on the rate of strengthening of the cost of goods and services. In September, annual inflation fell to 2.8% from 2.9%, against a growing correction of the base value to 2.8% from 2.6%, which allows inflation to exceed the target set by the Japanese regulator at 2.0% four months in a row. The board members remain confident that the crisis in the global economy is able to reverse the downward dynamics of the Japanese currency, which has already lost more than 20% in value this year against the background of hedging by investors of trade risks in traditional "safe" assets. The financial authorities conducted a currency intervention amounting to 2.84 trillion yen, which has not happened since 1998, instantly strengthening the USD/JPY pair, but the potential of the "bulls" was of a short-term nature.
Resistance levels: 145.00, 146.00, 147.00, 148.00.
Support levels: 144.00, 143.51, 142.54, 141.50.
EUR/USD: Upward correction may exhaust potential
Within the framework of this week, the EUR/ USD currency pair is testing the 1.0000 mark, but earlier it moved to a downward correction.
The single currency of the eurozone is under the influence of negative factors against the background of published PMI statistics. So, after negative data from the industry sector, in which the indicator was at 48.4 points, the index for the services sector also decreased, reaching 48.8 points from the previous 49.8 points. A significant negative background, which reflects business activity among the leading sectors of the European economy with increasing pressure from inflation, does not leave economists with hopes of avoiding a recession in the short term.
Resistance levels: 1.0009, 1.0131, 1.0253.
Support levels: 0.9765, 0.9643, 0.9521.
Silver Prices
The quotes of the banking metal are moving in an attempt to recoup the losses that the asset suffered earlier and did not allow the upward dynamics to gain a foothold from September 28. Currently, the asset has reached the level of 20.80 with the prospect of further growth, while waiting for the next incentives to strengthen. As part of the growth in value, silver was able to reach the indicators of the end of June at 21.00 due to the uncertainty of the US dollar, but for further strengthening, silver needs to break through the resistance threshold at 22.60. The precious metal found support in weaker-than-forecast data on the PMI index among industrialists, which provoked a drawdown in the level of US bond yields and a decline in the position of the US currency.
Resistance levels: 20.86, 21.20, 21.69, 22.00.
Support levels: 20.48, 20.00, 19.74, 19.50.
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