NZD/USD drops below 0.7200 ahead of US data


  • NZD/USD struggles to extend rebound into second straight day.
  • US Dollar Index recovers portion of Tuesday's losses.
  • Eyes on US CPI data and Fed's Beige Book.

The NZD/USD pair capitalized on the broad-based USD weakness and snapped a three-day losing streak on Tuesday. However, the pair struggled to carry its bullish momentum into a second straight day and reversed its direction on Wednesday. As of writing, NZD/USD was down 0.37% on a daily basis at 0.7188.

USD valuation continues to impact NZD/USD's movements

Earlier in the day, the data from New Zealand showed that the ANZ Commodity Price Index in December increased by 1.8%. Although this reading beat the market expectation of 0.4%, it failed to provide a boost to the kiwi.

In the meantime, the US Dollar Index (DXY), which closed in the negative territory amid falling US Treasury bond yields on Tuesday, is staging a rebound and allowing the bearish pressure on NZD/USD to remain intact. 

Ahead of the Consumer Price Index (CPI) data from the US, the DXY is up 0.18% on the day at 90.25. Markets expect the annual Core CPI to stay unchanged at 1.6% in December. A higher-than-expected reading could provide a boost to the USD. However, the US Federal Reserve uses the Personal Consumption Expenditures (PCE) Price Index as its preferred gauge of inflation, suggesting that any market reaction to the CPI data is likely to remain short-lived.

Meanwhile, the 10-year US Treasury bond yield is staying flat on the day at 1.125%, helping the USD stay resilient against its peers.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.7189
Today Daily Change -0.0037
Today Daily Change % -0.51
Today daily open 0.7226
 
Trends
Daily SMA20 0.714
Daily SMA50 0.703
Daily SMA100 0.6841
Daily SMA200 0.66
 
Levels
Previous Daily High 0.723
Previous Daily Low 0.7157
Previous Weekly High 0.7316
Previous Weekly Low 0.7153
Previous Monthly High 0.7241
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7202
Daily Fibonacci 61.8% 0.7185
Daily Pivot Point S1 0.7179
Daily Pivot Point S2 0.7132
Daily Pivot Point S3 0.7106
Daily Pivot Point R1 0.7252
Daily Pivot Point R2 0.7277
Daily Pivot Point R3 0.7324

 

NZD/USD

Overview
Today last price 0.7189
Today Daily Change -0.0037
Today Daily Change % -0.51
Today daily open 0.7226
 
Trends
Daily SMA20 0.714
Daily SMA50 0.703
Daily SMA100 0.6841
Daily SMA200 0.66
 
Levels
Previous Daily High 0.723
Previous Daily Low 0.7157
Previous Weekly High 0.7316
Previous Weekly Low 0.7153
Previous Monthly High 0.7241
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7202
Daily Fibonacci 61.8% 0.7185
Daily Pivot Point S1 0.7179
Daily Pivot Point S2 0.7132
Daily Pivot Point S3 0.7106
Daily Pivot Point R1 0.7252
Daily Pivot Point R2 0.7277
Daily Pivot Point R3 0.7324

 

 

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