NZD/USD depicts market’s inaction around 0.6370 amid mixed clues

• NZD/USD seesaws inside a choppy trading range for the second consecutive day.
• Sluggish markets restrict Kiwi pair’s immediate moves despite upbeat second-tier data from New Zealand.
• US Inflation is the key to clear directions, risk catalysts may entertain intraday traders.

NZD/USD struggles to justify the previous day’s bearish Doji candlestick as it treads water around 0.6370 during early Wednesday. In doing so, the Kiwi pair portrays the market’s inactivity amid a light calendar and mixed catalysts.

Among them, the US Dollar’s hesitance to track the downbeat US Treasury bond yields joins firmer New Zealand (NZ) data and a light calendar elsewhere. Also likely to restrict immediate NZD/USD moves could be the market’s cautious mood ahead of Thursday’s key inflation data for the US and China.

That said, New Zealand’s ANZ Commodity Price Index improved sharply to -0.1% in December versus -5.7% market forecasts and -4.0% prior.

Elsewhere, the US Dollar Index (DXY) remains pressured towards the 103.00 round figure, around 103.30 by the press time, as it struggles to extend Tuesday’s bounce off the seven-month low. In doing so, the greenback traces the downbeat US Treasury yields while also portraying the market’s inaction ahead of the US Consumer Price Index (CPI) data.

It’s worth mentioning that the US 10-year Treasury bond yields rose 10 basis points (bps) to 3.61% the previous day, following a corrective bounce to snap the two-day downtrend. However, the benchmark bond coupons retreated to 3.60% by the press time. The same join the upbeat Wall Street closing to help S&P 500 Futures print mild gains and weigh on the US Dollar’s safe-haven demand.

On a different page, the World Bank’s grim economic outlook and indecision over China’s prospects, following the latest reopening, also seem to trouble the NZD/USD pair amid an absence of any major data at home.

Moving on, NZD/USD may witness further lackluster moves amid anxiety ahead of Thursday’s inflation numbers from China and the US.

Technical analysis

A weekly symmetrical triangle restricts short-term NZD/USD moves between 0.6385 and 0.6345. However, the bearish Doji candlestick, marked the previous day, keeps the sellers hopeful.