• NZD/USD has picked up bids from around 0.5600 on soaring hawkish RBNZ bets.
  • The RBNZ is expected to escalate its OCR by 50 bps consecutively for the fifth time.
  • The gloomy outlook for US ISM PMI data is weakening the DXY.

The NZD/USD pair has rebounded firmly after picking bids around 0.5600 in the Tokyo session. Last week, the asset declined after failing to cross the critical hurdle of 0.5750. The kiwi bulls witnessed an intense sell-off despite a decline in the monthly Consumer Price Index (CPI) data. The monthly inflation data declined to 6.8% from the prior release of 7%.

Also, the downbeat Caixin Manufacturing PMI data kept the antipodean on tenterhooks. The economic data has landed at 48.1, lower than the expectations and the prior release of 49.5. It is worth noting that New Zealand is a leading trading partner of China and a weaker-than-projected Caixin Manufacturing PMI data significantly impacts NZ exports.

This week, investors will focus on the interest rate decision by the Reserve Bank of New Zealand (RBNZ). Reuters poll on RBNZ rate hike forecast claims a fifth consecutive rate hike by 50 basis points (bps). A fifth half-a-percent rate hike by the RBNZ Governor Adrian Orr will push the Official Cash Rate (OCR) to 3.5%. It would be worth watching whether an OCR above 3% is sufficient to anchor the galloping inflation.

Meanwhile, the US dollar index (DXY) is expected to drop below the immediate cushion of 112.00. The DXY will likely witness a decline ahead of US ISM Manufacturing PMI data. The continuation of ‘the hawkish’ stance on interest rates by the Federal Reserve (Fed) has shrunk the extent of manufacturing activities. Firms have postponed expansion plans due to higher interest rates and bleak demand growth.

Per the projections, the US ISM Manufacturing data will decline to 52.3 vs. the former release of 52.8. Also, the US ISM New Orders Index data, which is an indicator that reflects forward demand is expected to drop significantly to 49.6 against the prior reading of 51.3.

NZD/USD

Overview
Today last price 0.5617
Today Daily Change 0.0027
Today Daily Change % 0.48
Today daily open 0.559
 
Trends
Daily SMA20 0.5907
Daily SMA50 0.6113
Daily SMA100 0.6213
Daily SMA200 0.6473
 
Levels
Previous Daily High 0.5752
Previous Daily Low 0.5573
Previous Weekly High 0.5755
Previous Weekly Low 0.5565
Previous Monthly High 0.6162
Previous Monthly Low 0.5565
Daily Fibonacci 38.2% 0.5641
Daily Fibonacci 61.8% 0.5684
Daily Pivot Point S1 0.5525
Daily Pivot Point S2 0.5459
Daily Pivot Point S3 0.5345
Daily Pivot Point R1 0.5704
Daily Pivot Point R2 0.5818
Daily Pivot Point R3 0.5883

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD preserves its recovery momentum and trades near 1.0500 in the European session. Despite the risk-averse market atmosphere, the US Dollar is struggling to find demand ahead of mid-tier data releases, helping the pair hold in positive territory.

EUR/USD News

GBP/USD clings to recovery gains above 1.2150

GBP/USD clings to recovery gains above 1.2150

GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.

GBPUSD News

Gold price struggles to gain traction, holds above $1,770

Gold price struggles to gain traction, holds above $1,770

Gold price is having a difficult time gathering bullish momentum and continuing to fluctuate in a tight range slightly above $1,770. The benchmark 10-year US Treasury bond yield holds steady above 3.5% ahead of US data, not allowing XAU/USD to find direction.

Gold News

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan will work alongside Al Fardan Exchange LLC in the United Arab Emirates (UAE) to power faster transaction settlement and transfers in fiat currencies.

Read more

Are global rate markets too complacent about central bank intentions for 2023?

Are global rate markets too complacent about central bank intentions for 2023?

Markets and economists are split between a 25 bps and a 50 bps rate hike (bringing the key rate to 4% or 4.25%) but are eager to hear about the Bank of Canada’s future guidance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures