NZD/USD’s rally loses steam head of 0.6100 with the RBNZ and US CPI on tap
09.04.2024, 17:00

NZD/USD’s rally loses steam head of 0.6100 with the RBNZ and US CPI on tap

  • New Zealand Dollar finds sellers at 0.6075 with the USD picking up on a sourer market sentiment.
  • Investors are increasingly cautious ahead of the all-important US CPI data, due on Wednesday.
  • Somewhat earlier, the monetary policy statement of the RBNZ will be closely watched for more clues on the bank's policy stance.

The New Zealand Dollar remains on the front foot for the second consecutive day on Tuesday. The pair, however, has found some supply at the 50% Fibonacci retracement of the March sell-off and is trimming losses as the market braces for the RBNZ decision and the US CPI release.

The RBNZ will, most likely, leave rates unchanged, thus the main focus will be on the statement. The New Zealand central bank is expected to be one of the last ones to start cutting rates, as inflation remains at levels more than twice the bank’s target rate. This and the improved data from China have been the main fundamental supports for the Kiwi.

Recent data, however, has shown a deteriorating economic outlook. The Q4 GDP confirmed the recession levels, which might open cracks in the bank’s hawkish stance. Any hints of a dovish turn on the statement might hurt the pair’s recovery.

Later on Wednesday, US CPI is expected to reveal that price pressures remain steady at levels above 3% in the US. After the strong US employment levels seen last week, further confirmation of resilient inflation will cast further doubt on the Fed’s easing plans. That would have a positive impact on the US Dollar.

NZD/USD

Overview
Today last price 0.6056
Today Daily Change 0.0024
Today Daily Change % 0.40
Today daily open 0.6032
 
Trends
Daily SMA20 0.6036
Daily SMA50 0.6091
Daily SMA100 0.6138
Daily SMA200 0.6068
 
Levels
Previous Daily High 0.604
Previous Daily Low 0.6
Previous Weekly High 0.6047
Previous Weekly Low 0.5939
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.6025
Daily Fibonacci 61.8% 0.6015
Daily Pivot Point S1 0.6008
Daily Pivot Point S2 0.5984
Daily Pivot Point S3 0.5968
Daily Pivot Point R1 0.6048
Daily Pivot Point R2 0.6064
Daily Pivot Point R3 0.6088

 

 

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