Daily Forex Analysis - 23 April 2021

USD Overview (23 April 2021)

Yesterday, USD strengthened against most major currencies except JPY.

The Unemployment Claims data (Actual: 547K, Forecast: 607K, Previous: 586K revised from 576K) released yesterday indicated a decline in the number of unemployment benefits being claimed by Americans last week. This figure is the lowest yet during the pandemic, validating that the job market is in good recovery.

The flash PMI data will be released later at 2145 (SGT).

- Flash Services PMI (Forecast: 61.6, Previous: 60.4 revised from 60.0)

- Flash Manufacturing PMI (Forecast: 60.9, Previous: 59.1 revised from 59.0)

The New Home Sales data (Forecast: 885K, Previous: 775K) will be released later at 2200 (SGT).

NZD/USD Outlook (23 April 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced down from the key level of 0.72.

New Zealand banks will be closed next Monday in observance of Anzac Day. Expect lower trading volume and volatility during the usual New Zealand market session.

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for short-term selling opportunities of NZD/USD.

AUD/USD Outlook (23 April 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD bounced up from the key level of 0.77.

The Australian flash PMI data released earlier today indicated an increase in the pace of expansion in business activities this month.

- Flash Manufacturing PMI (Actual: 59.6, Forecast: NA, Previous: 56.8 revised from 57.0)

- Flash Services PMI (Actual: 58.6, Forecast: NA, Previous: 55.5 revised from 56.2)

Australian banks will be closed next Monday in observance of Anzac Day. Expect lower trading volume and volatility during the usual Australian market session.

AUD/USDs next support zone is at 0.75500 and the next resistance zone is at 0.78000.

Look for short-term buying opportunities of AUD/USD.

USD/JPY Outlook (23 April 2021)

Overall, USD/JPY is ranging across.

The Japanese Flash Manufacturing PMI data (Actual: 53.3, Forecast: 53.1, Previous: 52.7 revised from 52.0) released earlier today indicated a slight increase in the pace of expansion of the manufacturing sector.

Currently, USD/JPY is testing to break below the key level of 108. Its next support zone is at 106.000 and the next resistance zone is at 108.500.

Look for selling opportunities of USD/JPY if it breaks below the key level of 108.

EUR/USD Outlook (23 April 2021)

Overall, EUR/USD is trending upwards.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its monetary policy unchanged. The Pandemic Emergency Purchase Programme (PEPP) will still continue with a total envelope of €1,850 billion until at least the end of March 2022 while the Asset Purchase Programme (APP) will continue at a monthly pace of €20 billion. The central bank also expect purchases under the PEPP to increase in the coming months. Although ECB President Lagarde acknowledged that progress has been made in the recovery of the eurozone economy, it is still early at the moment to cut back on bond purchasing.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Service PMI (Forecast: 46.6, Previous: 48.2 revised from 47.8)

- French Flash Manufacturing PMI (Forecast: 59.0, Previous: 59.3 revised from 58.8)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Services PMI (Forecast: 51.1, Previous: 51.5 revised from 50.8)

- German Flash Manufacturing PMI (Forecast: 65.8, Previous: 66.6)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.0, Previous: 62.5 revised from 62.4)

- Flash Services PMI (Forecast: 49.1, Previous: 49.6 revised from 48.8)

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for short-term selling opportunities of EUR/USD up until the release of the series of eurozone PMI data.

GBP/USD Outlook (23 April 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke below the key level of 1.39 and bounced off the support zone of 1.38000.

The UK Retail Sales m/m data (Forecast: 1.5%, Previous: 2.1%) will be released later at 1400 (SGT).

The UK flash PMI data will be released later at 1630 (SGT).

- Flash Manufacturing PMI (Forecast: 59.0, Previous: 58.9 revised from 57.9)

- Flash Services PMI (Forecast: 58.9, Previous: 56.3 revised from 56.8)

GBP/USDs next support zone is at 1.38000 and the next resistance zone is at 1.40000.

Look for short-term buying opportunities of GBP/USD up until the release of the flash PMI data.

USD/CAD Outlook (23 April 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke below the key level of 1.25.

USD/CADs next support zone is at 1.23800 and the next resistance zone is at 1.26100.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (23 April 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY broke below the key level of 150.

The Japanese Flash Manufacturing PMI data (Actual: 53.3, Forecast: 53.1, Previous: 52.7 revised from 52.0) released earlier today indicated a slight increase in the pace of expansion of the manufacturing sector.

The UK Retail Sales m/m data (Forecast: 1.5%, Previous: 2.1%) will be released later at 1400 (SGT).

The UK flash PMI data will be released later at 1630 (SGT).

- Flash Manufacturing PMI (Forecast: 59.0, Previous: 58.9 revised from 57.9)

- Flash Services PMI (Forecast: 58.9, Previous: 56.3 revised from 56.8)

GBP/JPYs next support zone is at 148.900 and the next resistance zone is at 151.000.

Look for selling opportunities of GBP/JPY.

EUR/JPY Outlook (23 April 2021)

Overall, EUR/JPY is ranging across.

The Japanese Flash Manufacturing PMI data (Actual: 53.3, Forecast: 53.1, Previous: 52.7 revised from 52.0) released earlier today indicated a slight increase in the pace of expansion of the manufacturing sector.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its monetary policy unchanged. The Pandemic Emergency Purchase Programme (PEPP) will still continue with a total envelope of €1,850 billion until at least the end of March 2022 while the Asset Purchase Programme (APP) will continue at a monthly pace of €20 billion. Although ECB President Lagarde acknowledged that progress has been made in the recovery of the eurozone economy, it is still early at the moment to cut back on bond purchasing.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Service PMI (Forecast: 46.6, Previous: 48.2 revised from 47.8)

- French Flash Manufacturing PMI (Forecast: 59.0, Previous: 59.3 revised from 58.8)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Services PMI (Forecast: 51.1, Previous: 51.5 revised from 50.8)

- German Flash Manufacturing PMI (Forecast: 65.8, Previous: 66.6)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.0, Previous: 62.5 revised from 62.4)

- Flash Services PMI (Forecast: 49.1, Previous: 49.6 revised from 48.8)

EUR/JPYs next support zone is at 128.500 and the next resistance zone is at 130.800.

Look for selling opportunities of EUR/JPY.