NZD/USD consolidates in a range below mid-0.6900s, eyeing US CPI/FOMC minutes

  • NZD/USD was seen oscillating in a narrow trading band through the early European session.
  • A modest USD pullback extended some support; a cautious market mood capped the upside.
  • Investors now eye US CPI report and FOMC meeting minutes for a fresh directional impetus.

The NZD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses, below mid-0.6900s through the early European session.

A softer tone around the US Treasury bond yields triggered a modest US dollar corrective pullback from one-year tops touched in the previous day. This, in turn, was seen as a key factor that assisted the NZD/USD pair to find some support near the 0.6920 region on Wednesday. That said, the prevalent cautious mood around the equity markets kept a lid on any meaningful upside for the NZD/USD pair, at least for the time being.

Worries about a faster than expected rise in inflation and signs of a slowdown in the global economic recovery have been fueling concerns about stagflation. This, along with fears of a spillover from China Evergrand's debt crisis, continued weighing on investors' sentiment. Apart from this, prospects for an early policy tightening by the Fed helped limit the USD losses and further collaborated to cap gains for the NZD/USD pair.

Investors seem convinced that the Fed will begin rolling back its massive pandemic-era stimulus as soon as November. The markets have also started pricing in the possibility of an interest rate hike in 2022 amid expectations that the recent widespread rally in commodity prices will stoke inflation. Hence, the market focus will remain on Wednesday's release of the US consumer inflation figures for the month of September.

This will be followed by the FOMC meeting minutes later during the US session. This would assist investors to gauge the Fed's path on normalizing monetary policy, which will influence the near-term USD price dynamics and provide a fresh directional impetus to the NZD/USD pair. In the meantime, the broader market risk sentiment will be looked upon for some short-term trading opportunities.

Technical levels to watch


Today last price 0.6935
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.6936
Daily SMA20 0.6982
Daily SMA50 0.7005
Daily SMA100 0.7032
Daily SMA200 0.7106
Previous Daily High 0.6971
Previous Daily Low 0.6923
Previous Weekly High 0.6984
Previous Weekly Low 0.6876
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6953
Daily Pivot Point S1 0.6915
Daily Pivot Point S2 0.6895
Daily Pivot Point S3 0.6867
Daily Pivot Point R1 0.6963
Daily Pivot Point R2 0.6991
Daily Pivot Point R3 0.7011



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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more