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. 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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures