NZD/USD extends losses near 0.5870, focus on US data

NZD/USD continues the downward trajectory for more than a week.
NZD faces downward pressure as New Zealand's Food Price Index fell 0.9% in October.
Goldman Sachs anticipates the RBNZ to commence rate cuts starting in the fourth quarter of 2024.
US inflation could grow but at a slower pace, which could put pressure on the US Dollar.

Akhtar Faruqui FXStreet

NZD/USD continues the losing streak that began on November 6, trading lower around 0.5870 during the Asian session on Tuesday. The New Zealand Dollar (NZD) faces downward pressure, potentially attributed to the Kiwi Food Price Index (FPI) recording a 0.9% (MoM) decline in October.

Given that food prices constitute nearly 19% of the NZ consumer price index, the FPI holds significance as an indicator of inflation in the country. It tracks the prices of a basket of food items representing the typical spending patterns of New Zealand households.

Goldman Sachs is projecting a drop in New Zealand CPI rates to below 3.0% by Q4 2024. The forecast includes an expectation that the Reserve Bank of New Zealand's (RBNZ) rate hike cycles are now complete, and Goldman Sachs anticipates the RBNZ to initiate rate cuts starting in Q4 of 2024.

The US Dollar Index (DXY) grapples with challenges as it struggles to halt losses, bidding around 105.70. The Greenback could face headwinds from the volatile US bond yields. The yield on the 10-year US Treasury bond navigates within a short range, standing at 4.63% by the press time.

The market anticipates a rise in the US Consumer Price Index (CPI) for October, but at a slower pace. Simultaneously, the forecast for the core annual rate remains stable. If the actual data aligns with these expectations, it could solidify the market's belief that the Federal Reserve (Fed) has concluded its interest rate hikes. This, in turn, could reinforce the downward pressure on the US Dollar (USD).

NZD/USD: technical levels to watch

Overview
Today last price	0.5872
Today Daily Change	-0.0010
Today Daily Change %	-0.17
Today daily open	0.5882

Trends
Daily SMA20	0.5872
Daily SMA50	0.5911
Daily SMA100	0.6004
Daily SMA200	0.6104

Levels
Previous Daily High	0.5899
Previous Daily Low	0.587
Previous Weekly High	0.6002
Previous Weekly Low	0.5877
Previous Monthly High	0.6056
Previous Monthly Low	0.5772
Daily Fibonacci 38.2%	0.5881
Daily Fibonacci 61.8%	0.5888
Daily Pivot Point S1	0.5868
Daily Pivot Point S2	0.5855
Daily Pivot Point S3	0.5839
Daily Pivot Point R1	0.5897
Daily Pivot Point R2	0.5913
Daily Pivot Point R3	0.5926

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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