Asian markets are mixed to start the new trading week, with the NZD/USD the one looking the most bullish at the moment.
The NZD/USD is up in early Asian trade by around 0.3% and that is on the back of news that COVID restrictions will remain in place for the time being. In terms of the Kiwi levels, we can see now that price is once again pushing back up towards the 0.6700 level, but in reality, there will be a fair bit of work to do for price to break through that region.
The main focus for the Kiwi this week will be GDP, which is from Q2 and will show a pretty bad contraction. But as we’ve been seeing, this is not only expected but well and truly priced in.
At the same time, there is some Chinese data this week, including industrial production, and that will impact the Asian pairs across the board.
The AUD/USD is not doing much early on Monday, and it too is consolidating under the 0.7300 level. We can see price coiling around that point and we will need to get break above 0.7300 or below 0.7250.
For the time being, the trend remains to the upside and unless say 0.7200 drops, I remain bullish. The key release this week is jobs data on Thursday, however, we also get the RBA minutes, however,r the latter will likely not be market moving.
The BOJ is the big story of the week for the Yen, however, it will come as no surprise that there is not likely to be much of a change of pace.
For me, the USD/JPY chart is the most interesting as we can see the triangle formation below. This means a breakout is on the cards here and for now, 106.00 is the magnet. If this pattern breaks then we could see an extended move.