NZD/USD gains ground on expected Chinese stimulus, extends gains to near 0.6140

NZD/USD moves in an upward direction amid a subdued US Dollar.
The improved US balance sheet gives rise to US bond prices, undermining the US Dollar.
The expected Chinese stimulus could boost the New Zealand Dollar.

Akhtar Faruqui FXStreet

NZD/USD inches higher for another session, trading around 0.6140 during the early European hours on Tuesday. The US Dollar (USD) has faced a challenge on downbeat US Treasury yields. The release of an improved US balance sheet has supported US Treasury bond prices, which, in turn, puts downward pressure on the Greenback.

The US Dollar Index (DXY) holds ground around 103.50 with the 2-year and 10-year yields on US Treasury notes standing lower at 4.29% and 4.03%, respectively, by the press time. Moreover, there is a prevailing market risk spurs on escalated tension in the Middle East.

Tuesday's releases of the Housing Price Index and Consumer Confidence figures will be under scrutiny by market observers, aiming to glean additional insights into the US economic landscape.

The prevailing expectation among most economists is for the first rate cut to occur in May or June, though the possibility of a cut at the Federal Reserve's March meeting is not ruled out. Meanwhile, the anticipated Federal Open Market Committee (FOMC) statement on Wednesday, January 31 is expected to yield no adjustment.

The New Zealand Dollar (NZD) seems to have received a boost with the People's Bank of China (PBoC) considering a possible reduction in the Medium-term Lending Facility (MLF) rate. Meanwhile, Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway remarked on Tuesday that recent economic data indicates the effectiveness of monetary policy, but there remains a journey ahead before inflation reaches its target midpoint of 2.0%.

NZD/USD: additional important levels

Overview
Today last price	0.6139
Today Daily Change	0.0005
Today Daily Change %	0.08
Today daily open	0.6134

Trends
Daily SMA20	0.6172
Daily SMA50	0.6185
Daily SMA100	0.6054
Daily SMA200	0.6087

Levels
Previous Daily High	0.6145
Previous Daily Low	0.6086
Previous Weekly High	0.615
Previous Weekly Low	0.6061
Previous Monthly High	0.641
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6123
Daily Fibonacci 61.8%	0.6109
Daily Pivot Point S1	0.6098
Daily Pivot Point S2	0.6063
Daily Pivot Point S3	0.604
Daily Pivot Point R1	0.6157
Daily Pivot Point R2	0.618
Daily Pivot Point R3	0.6216

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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