- NZD/USD bulls have been stopped in their tracks by the miss in the CPI data.
- The US dollar found a lease of life on Wall Street, bulls encouraged by data.
New Zealand's Consumer Price Index was released in recent trade which has changed the bird's flight trajectory in early Asia.
At the time of writing, NZD/USD is trading at 0.6667 between a low of 0.6660 and from a high of 0.6677.
Overnight, the bird was pushing up against 0.6690 despite some ground made in the US dollar.
But in Asia, the CPI data missed expectations and has put a roadblock up for the bulls.
New Zealand CPI (QoQ) Q3: 0.7% (exp 0.9%; prev -0.5%) CPI (YoY) Q3: 1.4% (exp 1.7%; prev 1.5%).
Markets will be in anticipation of the next move from the Reserve bank of New Zealand.
''The RBNZ has indicated that a Funding for Lending Programme (FLP) is the next cab off the rank in terms of monetary stimulus, essentially providing cheap funding to the banks with the explicit focus of targeting lower retail interest rates,'' analysts at ANZ bank explained.
''We expect an FLP will be announced at the November MPS meeting and deployed soon after. The FLP will be complementary to the existing LSAP programme, while negative interest rates are expected to be added next year.''
US data was encouraging
Meanwhile, the US headlines on US fiscal negotiations were mixed overnight but jobless claims and housing reports were encouraging.
Weekly jobless claims for the US eased this week with both initial claims and continuing claims lower than anticipated.
The data showed initial claims for state unemployment benefits in the United States dropped 55,000 to a seasonally adjusted 787,000 last week, although the overall number was still relatively high. A Reuters survey had forecast 860,000 claims in the latest week.
''This follows a lift in the number of people claiming an unemployment benefit last week, but these data tend to be volatile, and numbers are still historically high, so it is too early to say the job situation is improving. '
Markets will be tuned in to tonights final US Presidential debate in anticipation of some showmanship from the US President Donald Trump in the last effort to win over the US population.
His contestant, Joe Biden, is leading in the polls which are encouraging short positions the greenback as expectations of larger stimulus will come from a Democrat landslide victory.
The bird, while holding above bullish structure, is destined for higher highs.
Today last price0.6669
Today Daily Change0.0015
Today Daily Change %0.23
Today daily open0.6654
Previous Daily High0.6679
Previous Daily Low0.6573
Previous Weekly High0.6683
Previous Weekly Low0.6576
Previous Monthly High0.6799
Previous Monthly Low0.6511
Daily Fibonacci 38.2%0.6639
Daily Fibonacci 61.8%0.6613
Daily Pivot Point S10.6591
Daily Pivot Point S20.6529
Daily Pivot Point S30.6485
Daily Pivot Point R10.6697
Daily Pivot Point R20.6741
Daily Pivot Point R30.6803
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