There's been plenty of back and forth action in markets this week as traders continue to weigh up the outlook for major central banks. UK CPI data triggered some more sticky inflation fears yesterday but not everything, everywhere else is equal.
NZ CPI data came in softer today and that is prompting markets to price in just one more rate hike by the RBNZ to follow next month. Meanwhile, the Fed funds futures curve is still siding with rate cuts (two at the moment) as we look towards year-end.
That makes for a bit of a tricky one and it will be made more messy when we get to the PMI data tomorrow surely.
Here are some interesting charts at play for now:
- USD/JPY running up against resistance at 135.00, key level holding for now
- EUR/JPY testing the October highs near 148.00, key resistance region at 147.75 to 148.40
- AUD/JPY running up against resistance at 100-day moving average at 90.37
- NZD/USD threatens drop below 200-day moving average at 0.6160
- WTI drops back below $80 with eyes on the 100-day moving average at $76.88; gap closure seen at $75.65
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