• RBNZ meeting is by far the most noteworthy event scheduled for today
  • DoE’s report on a change in oil stocks could affect oil prices
  • Housing data from the Canadian economy

There is no doubt that the RBNZ’s meeting should be the most important event during today’s session even as the bank is expected to leave interest rates unchanged. Moreover, the US Department of Energy will reveal its weekly report regarding a change in oil inventories which could affect oil prices quite significantly taking into account where the price is at the chart.

Canadian housing data – (1:15 pm BST – housing starts, 1:30 pm BST – building permits): The Canadian dollar has lost some of its appeal which earned following an interest rate hike delivered by the BoC. The CAD has become quite severely overbought, hence some corrective moves could not be shocking. Even if the housing data has rather a limited impact on the currency, it could hasten depreciation if they miss forecasts. It’s especially true when we take into consideration a housing bubble which potentially prompted the BoC to start hiking rates. The official consensus suggests 205k in case of housing starts. In turn, building permits are expected to decline 1.8% mom.

3:30 pm BST – DoE crude oil stocks: The API’s figures reported a significant drop in stocks which could help oil prices to rise if it’s confirmed by the governmental data later today.

10:00 pm BST – RBNZ rate decision: The Reserve Bank of New Zealand is expected to leave rates unchanged during today’s meeting but the decision on its own should not be the most important. Along with the rate decision, there will the monetary policy statement enriched by updated economic forecasts. Moreover, the bank could point to a recent sharp increase of the NZD which could hamper achieving the inflation target. In effect, the NZD could find itself under pressure.

link do file download linkThe NZDUSD smashed a support placed at 0.7400 earlier this week. The pair could eye 0.7190 as the closest target. A downward move could speed up if the RBNZ delivers a dovish statement. Source: xStation5