Forex Trading on NZDUSD. US Fed Looking at Inflation this Week. USD Strongest Currency.

In today's GCI Market Outlook, let's take a look at forex trading on NZDCAD, GBPCAD, EURUSD and NZDUSD.

The Reserve Bank of New Zealand cut their interest rates yesterday as predicted and look what happened.

If you are new to the economic calendar, this is the announcement.

The previous rate is here, the predicted rate is here, and the new rate is here.

Obviously, a lower interest rate means a lower currency value, so pairs like NZDUSD, fall for hours and days.

On the daily chart, we can see the fall of around 300 pips, and these stochastic oscillators over sold, but it may not be over.

Price action is at a key level now, and we can see serious support below. The US dollar is the strongest currency right now, based on a strong NFP report last week, a strong economy, and finally some political stability.

Getting back to the calendar, we have some key data for the US Fed with CPI and PPI today, and tomorrow.

Also, we have Canadian employment news on Friday. Canadian dollar pairs are showing a mixture of strong and weak, so we can pick what we want after the news.

For example, we see a rising wedge on GBPCAD, so good news may have price action breaking out.

Or on NZDCAD, if the news is bad, we may see a pullback giving us a short opportunity.

That's all for now, CFDs and FX are leverage products and your capital may be at risk.