NZD/USD fails to break out of its daily range, remains below 0.66 after US CPI data


  • Annual CPI falls to 1.8% in the U.S. in May.
  • US Dollar Index ignores soft inflation data, posts small gains.

With the initial reaction to the inflation data from the United States, the NZD/USD pair rose modestly to a session high of 0.6590 but quickly erased its spike. As of writing, the pair was trading at 0.6575, losing 0.05% on a daily basis.

The lack of macroeconomic data releases from New Zealand on Wednesday allowed the pair to remain in a tight consolidation phase after closing the first two days of the week with small losses.

In the second half of the day, the U.S. Bureau of Labor Statistics reported that inflation in the U.S., as measured by the Consumer Price Index (CPI), edged down to 1.8% on a yearly basis in May from 2% in April and fell short of the market expectation of 1.9%. Furthermore, the core CPI, which strips volatile food and energy prices, ticked down to 2% annually while staying unchanged at 0.1% on a monthly basis.

Following the knee-jerk drop in response to the inflation figures, the US Dollar Index didn't have a difficult time recovering its losses as the Fed is likely to ignore the CPI readings and remain focused on the core PCE Price Index as its preferred gauge of inflation. At the moment, the DXY is up 0.07% on the day at 96.77.

In the early trading hours of the Asian session, a sharp market reaction to the labour market data from Australia could impact the AUD/USD pair as well as the positively-correlated NZD/USD pair on Thursday. 

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6575
Today Daily Change -0.0003
Today Daily Change % -0.05
Today daily open 0.6578
 
Trends
Daily SMA20 0.6559
Daily SMA50 0.6627
Daily SMA100 0.673
Daily SMA200 0.671
Levels
Previous Daily High 0.6612
Previous Daily Low 0.6568
Previous Weekly High 0.6682
Previous Weekly Low 0.6528
Previous Monthly High 0.6684
Previous Monthly Low 0.6481
Daily Fibonacci 38.2% 0.6585
Daily Fibonacci 61.8% 0.6595
Daily Pivot Point S1 0.656
Daily Pivot Point S2 0.6542
Daily Pivot Point S3 0.6516
Daily Pivot Point R1 0.6604
Daily Pivot Point R2 0.663
Daily Pivot Point R3 0.6648

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends its gains toward 1.1300 after the dovish Fed decision

EUR/USD has extended its gains after the Fed opened the door to cutting interest rates, stating that uncertainties have increased. Markets are awaiting EU leaders to divvy up top jobs.

EUR/USD News

GBP/USD falls after the dovish BOE statement

GBP/USD retreats below 1.2700. after the BOE downgraded Q2 forecasts, sees increasing signs of wage growth leveling off, and notes downside risks have increased. However, they remain on course to tighten policy.

GBP/USD News

USD/JPY rebounds from multi-month lows, continues to trade below 108

Fed's dovish shift continues to weigh on the greenback. 10-year US Treasury bond yield plummets to lowest level since November 2016. Wall Street looks to open sharply higher on Thursday.

USD/JPY News

Gold eases from multi-year tops, still well bid near $1380 level

Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.

Gold News

FOMC: Prelude to a rate cut?

The Federal Reserve added little new to its policy prescript in Wednesday’s FOMC statement and economic projections and with the anticipation for a July rate cut long priced into market levels the reaction was decidedly uninvolved.

Read more

Majors

Cryptocurrencies

Signatures