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What To Expect Out Of FOMC and RBNZ This Week

October 27, 2013

What a week in front of us with the FOMC in the United States and the RBNZD being major central banks to announce monetary policies statements.

We are strongly interested in those because, firstly, anything that comes out of the US brings volatility on markets and, secondly, the recent rethoric for RBNZD has been extremely bearish on the kiwi. And we are expecting the same to follow this week, hence lower nzd.

Because of that we are looking to re-enter on the long side on the audnzd pair as we might have there a powerful move to come and this time the fundamentals seem to align with technicals as well.

Canadian GDP also due this week and you know we are bearish on the CAD all over the board and this release should come in line with this week's bearish picture for the Canadian economy BOC showed. Hence, a lower GDP print should pave the road for CAD to attack the 1.06 area.

Regarding the FOMC, hesitation and controversy to come as well, look for prices until Wednesday to try to keep current ranges and only after the FOMC, starting with Thursday, to have some positioning for end of year trading.

In other words, crosses will travel most likely until FOMC, and after that majors will most likely dominate. It remains to be seen.

Capital Properties FX Team