March 21, 2022
NZD/USD: The New Zealand currency rose against the US dollar on Friday, showing strong weekly growth. The ongoing Russian-Ukrainian conflict and strict Western sanctions on Russian exports mean that other commodity-linked currencies like the New Zealander remain in high demand. Also, the kiwi got additional support after the signal of China’s Vice Premier about more stimulus to support Chinese markets. The announcement of stimulus brought optimism for the antipodean currencies as New Zealand is one of the leading exporters to China. As for New Zealand macroeconomic figures, the country’s Exports improved, Imports eased while the trade deficit widened in February. The pair can correct to 0.6885, and after that, the price will probably continue its upward movement towards 0.6960.
USD/CAD: The US dollar fell against the Canadian dollar on Friday. Canadian retail sales rose in January, well above market expectations. Stronger-than-expected domestic retail sales data supported the view that the Bank of Canada will keep pace with expected rate hikes this year by the Federal Reserve. The Canadian dollar cheers firmer prices of Canada’s key export item, WTI crude oil, amid supply crunch fears due to the latest geopolitical tensions. Risk catalysts are likely to remain in the driver’s seat as Ukraine-Russia tensions are escalating. As a result, oil prices may witness further upside, keeping the pair sellers hopeful. The local resistance level can be seen at 1.2620. If the pair reaches this level and rebounds, it can trigger a further decline towards 1.2565.
BRENT: Oil prices rose on Friday but posted a second straight weekly loss after a volatile trading week with no easy replacement for Russian barrels in a tight market. The market continues to worry about supply disruptions. The latest report from the Organization of the Petroleum Exporting Countries and allies, including Russia, called OPEC+, showed that some producers are still falling short of their agreed supply quotas. In February, OPEC+ missed its production target by more than 1 million barrels per day. The poor supply outlook and high prices prompted the International Energy Agency on Friday to outline ways to cut oil use by 2.7 million barrels per day within four months – including car-pooling, lower speed limits, and cheaper public transport. That would help offset the 3 million barrels per day of Russian crude and products that the IEA estimated would be off the market by April.