NZD/USD bulls to challenge higher time frame bears

• NZD/USD bulls are hunting down a weekly key target. 
• A quiet start to the week, a time to reflect on both domestic ad offshore fundamentals. 

NZD/USD is firm at the start of a new week and has eyes on the weekly targets towards 0.67 the figure. At 0.6630, the pair is trading 0.28% higher on the day towards a critical target on the longer-term time frames, as illustrated below. 

However, overall, it has been a quiet start to the week so far as traders digest a busy week of events last week and significant fundamentals that are setting the stage for March and the third round of 2022's central bank meetings.

''FX markets have generally been pretty tame since Friday, and that was despite much stronger-than-expected US data that rattled bonds,'' analysts at ANZ Bank explained. ''This is a quiet week for domestic data, with mostly second-tier data. But US CPI could cause volatility,'' the analysts said. 

For an insight into what is to be expected in the data, analysts at TD securities explained, ''Core, as well as total prices likely, slowed on an m/m basis, with the pace still fairly strong. Strength in used vehicles was probably partly offset by weakness in hotels and airfares. Our forecast implies 7.2%/5.8% yoY for total/core prices, up from 7.0%/5.5%. The report will include updated weights and seasonal factors, neither of which should change trends significantly.''

Meanwhile, the ''bigger picture,'' analysts at ANZ argue, ''we still see the NZD as conflicted rather than trending – local data has been very strong, commodity prices are booming and interest rates are best in class, but the rest of the world is experiencing its own “re-awakening”, and fears of a hard landing and/or housing market wobbles never seem to be too far away.''

NZD/USD technical analysis

• NZD/USD Price Analysis: The 50% mean reversion is giving way in Asia

NZD/USD is on the verge of finding itself in a significant area on the charts, as per the prior analysis above. 

NZD/USD live market