NZD/USD aims to recapture 0.6200 despite Fed prepares for second 25 bps rate hike


  • 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.

NZD/USD

Overview
Today last price 0.6194
Today Daily Change -0.0052
Today Daily Change % -0.83
Today daily open 0.6246
 
Trends
Daily SMA20 0.6194
Daily SMA50 0.631
Daily SMA100 0.6267
Daily SMA200 0.6162
 
Levels
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

 

 

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