NZD/USD: Buyers dominate near 0.6830, inflation data in focus
|- NZD/USD trades near 0.6830 during the early Asian sessions on Tuesday.
- The pair rose on Monday as downward revisions to the US retail sales and continued favor to patience from Fed’s Powell.
- Local inflation gauge and the US consumer price index will be watched for fresh impulse.
NZD/USD is on bid around 0.6830 as New Zealand markets open for Tuesday trading. The New Zealand Dollar (NZD), also known as Kiwi, began the week on a positive note against the US Dollar (USD) as revisions in the US retail sales and neutral comments from the Fed Chair weighed on the greenback and helped commodity and linked currencies. Traders may now concentrate on the ANZ monthly inflation gauge for intermediate moves prior to focusing on the US consumer price index (CPI) figures.
The NZD/USD pair stretched its NFP-backed gains forward on Monday as weekend comments from the Fed Chair Jerome Powell were mostly in favor of no rate hikes unless necessary. Adding to the sentiment was downwardly revised February month retail sales figures from the US.
January month retail sales grew more than 0.0% forecast to 0.2% MoM while retail sales ex-autos increased +0.9% versus +0.3% expected. Also, the headline retail sales control group was up at 1.1% compared to +0.6% market consensus.
The retail sales figures seemed strong on the overlook but revisions to December month numbers could be considered as a reason for the USD’s decline. The retail sales control group was revised down to -2.3% from -1.7%, retail sales were dragged lower to -1.6% versus -1.2% initial announcement and retail sales ex-autos were trimmed to -2.1% against -1.8% previous result.
Looking forward, ANZ monthly inflation gauge and February month CPI numbers from the US will be closely observed. The local inflation gauge for New Zealand increased by 1.1% in January registering the largest monthly growth since late 2015. On the other hand, the US CPI ex-food & energy, also known as core CPI, is likely to remain unchanged on both monthly and yearly basis to 0.2% and 2.2% respectively whereas CPI (YoY) is also expected to maintain 1.6% January figure intact.
NZD/USD Technical Analysis
NZD/USD needs to overcome 0.6835 immediate upside barrier to confront the downward sloping resistance-line, at 0.6880, stretched since February, a break of which can flash 0.6905 and 0.6945 on the chart.
On the downside, 0.6790, 0.6750 and 0.6705 are likely nearby supports to watch during the decline.
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