- NZD/USD is looking to recapture the immediate resistance of 0.6200 amid the risk-on mood.
- The Fed is preparing for a consecutive 25bp rate hike despite fears of a banking sector meltdown.
- The demand for US Existing Home Sales soared amid cracked-down prices.
The NZD/USD pair has shown a recovery move from 0.6167 and is focusing to recapture the round-level resistance of 0.6200 in the early Asian session. The upside bias in the kiwi asset looks solid despite the Federal Reserve (Fed) is preparing for a consecutive 25 basis point (bp) rate hike for its March monetary policy.
S&P500 carry forwarded Monday’s recovery in Tuesday’s session and settled it on a promising note. This portrays a risk-on market mood as investors have digested the continuation of the policy-tightening spree by the Fed. The US Dollar Index (DXY) is struggling in maintaining its auction above 103.20 as investors are still not convinced that a liquidity influx of $30 billion into the First Republic Bank would safeguard it from the debacle.
Apart from the interest rate decision, guidance on borrowing rates through the Dot plot, inflation projections, and updates on the banking fiasco will be of utmost importance. Economist at UOB Group Lee Sue Ann suggested the Fed is likely to raise the Fed Funds Target Range by 25 bps at both its March and May gatherings. Fed chair Jerome Powell to bound to bring down the stubborn inflation and it would be interesting to see how he would handle the sticky inflation amid the banking sector shakedown.
On Tuesday, a solid recovery in United States Existing Home Sales data conveyed that the demand for real estate is recovering. Existing Home Sales in the US rose by 14.5% in February to an adjusted annual rate of 4.58 million, the National Association of Realtors (NAR) reported. It seems that cracked prices of real estate due to prolonged weaker demand amid higher interest rates have infused confidence among home buyers.
Meanwhile, the New Zealand economy is struggling to revive after the flood situation, which resulted in superlative liquidity flush into the economy and a vulnerable growth rate. However, the Reserve Bank of New Zealand (RBNZ) would continue to elevate the Official Cash Rate (OCR) to scale down persistent inflation.
|Today last price||0.6194|
|Today Daily Change||-0.0052|
|Today Daily Change %||-0.83|
|Today daily open||0.6246|
|Previous Daily High||0.6289|
|Previous Daily Low||0.6228|
|Previous Weekly High||0.6278|
|Previous Weekly Low||0.6131|
|Previous Monthly High||0.6538|
|Previous Monthly Low||0.6131|
|Daily Fibonacci 38.2%||0.6251|
|Daily Fibonacci 61.8%||0.6266|
|Daily Pivot Point S1||0.622|
|Daily Pivot Point S2||0.6193|
|Daily Pivot Point S3||0.6159|
|Daily Pivot Point R1||0.6281|
|Daily Pivot Point R2||0.6316|
|Daily Pivot Point R3||0.6342|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
AUD/USD holds onto RBA gains, ahead of Lowe and key data Premium
AUD/USD rose for the fourth consecutive day on Tuesday, reaching weekly highs above 0.6650. The positive tone around the Aussie prevails following the recent rate hike by the Reserve Bank of Australia. Governor Lowe will speak on Wednesday, and Australian GDP data is also due.
EUR/USD replicates sluggish markets around 1.0700 amid challenges for ECB hawks, Fed blackout Premium
EUR/USD licks its wounds around 1.0700 as bulls and bears jostle during a sluggish week comprising unimpressive data and the Fed blackout. The Euro price pared intraday losses during late Tuesday but remains sidelined as the early Asian session morning restricts the market’s moves.
Gold edges higher as US Dollar, yields dribble on mixed Fed concerns
Gold price seesaws around $1,963 amid the early hours of Wednesday’s Asian session, after a two-day rebound within a short-term trading range. In doing so, the XAU/USD pays little heed to the US Dollar’s slightly positive performance.
Arbitrum community to vote for AIP budget proposal as ARB hints 10% gains
The Arbitrum community has published the draft for the AIP budget proposal, voting to commence on June 9. The proposed budget aligns with the Foundation's strategic needs to represent and service the DAO. Three elements stand out concerning the Foundation's Administrative Budget Wallet.
Readying for hawkish Fed
S&P 500 made two runs over 4,300, yet was rejected in each. Bonds though didn‘t paint universally negative picture – only the sectoral composition of the decline did.