NZD/USD rejected from above 0.6300, remains sideways
|- NZD/USD keeps moving in a familiar range.
- US Dollar posts mixed results on Tuesday ahead of US CPI data.
- Stocks decline in Wall Street, US yields pullback.
The NZD/USD pair is hovering around 0.6275, within the 0.6300-0.6270 range. It continues to move sideways with a modest upside bias, without momentum.
A mixed US Dollar, market participants await CPI
The greenback is posting mixed results on Tuesdays. Prices across financial markets are moving sideways, ahead of key data. On Wednesday, the July US CPI is due. The annual rate is expected to drop from 9.1% to 8.7%. The numbers will be critical for expectations about Fed’s monetary policy.
“The market needs to decide whether slowing headline is more important than sticky and strong core. The USD remains sensitive to US data surprises”, explained analysts at TD Securities.
The DXY is falling 0.15% on Tuesday. It managed to remain above 106.00. At the same time US yields are modestly higher. The US 10-year yield peaked at 2.81% and returned to 2.79%.
The NZD/USD is moving sideways with immediate support at 0.6270. A break lower would expose 0.6250 and then the last week's low at 0.6210, which if broken should change the short-term bias from modestly bullish to neutral/bearish.
On the upside, a consolidation above 0.6300 should strengthen the kiwi. The next strong resistance is seen at 0.6350 (Aug high).
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