• It is RBNZ day in the Asian session and the kiwi is quiet ahead of the event. 
  • The MPS will be held against a backdrop of fragile global markets.

NZD/USD is down some 0.12% into the close on Wall Street in what has been a day of little activity for the pair, bounded by support and resistance, changing hands between 0.6423 and 0.6468 ahead of the Reserve Bank of New Zealand. 

''Equities and bond yields are also lower in the US, and general market volatility remains high, and as with last time, the MPS will be held against a backdrop of fragile global markets,'' analysts at ANZ Bank explained. 

''That does mean it has to compete with other factors for impact, but with fears of a hard landing at the core of what’s eating away at risk sentiment, as we’ve been saying for a while, if the RBNZ can strike the right balance between “we’ve got this” on inflation while signalling that it is cognisant of recession risks (not an easy job) while also preserving optionality, that’d likely be positive for the Kiwi.'' 

As for the greenback, the US dollar index has been on the backfoot and it hit nearly a one-month low while European Central Bank President Christine Lagarde said eurozone interest rates will likely be in positive territory by the end of the third quarter. The markets are starting to price in a higher interest rate regime around other central banks which is stripping the greenback of some demand. Against a basket of other major currencies (DXY), the dollar was down to 101.646, its lowest level since April 25.

Reuters reports that the greenback weakened further after data showed US business activity slowed in May as higher prices cooled demand for services while renewed supply constraints because of COVID-19 lockdowns in China and the war in Ukraine hampered production at factories.

''S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, showed the pace of growth was the slowest in four months.''

NZD/USD

Overview
Today last price 0.6461
Today Daily Change 0.0070
Today Daily Change % 1.10
Today daily open 0.6391
 
Trends
Daily SMA20 0.6404
Daily SMA50 0.6679
Daily SMA100 0.6704
Daily SMA200 0.6838
 
Levels
Previous Daily High 0.6415
Previous Daily Low 0.6363
Previous Weekly High 0.6417
Previous Weekly Low 0.6229
Previous Monthly High 0.7035
Previous Monthly Low 0.6451
Daily Fibonacci 38.2% 0.6395
Daily Fibonacci 61.8% 0.6383
Daily Pivot Point S1 0.6364
Daily Pivot Point S2 0.6337
Daily Pivot Point S3 0.6312
Daily Pivot Point R1 0.6416
Daily Pivot Point R2 0.6442
Daily Pivot Point R3 0.6469

 

 

 

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