NZD/USD gains momentum above 0.6250 ahead of the New Zealand Building Permits data

NZD/USD trades in positive territory for the second consecutive day above the mid-0.6200s on Monday.
The US labor data on Friday helped weaken the case for rate cuts from the Federal Reserve (Fed).
The stronger Chinese economic data last week has lifted the New Zealand Dollar (NZD).

Lallalit Srijandorn FXStreet

The NZD/USD pair gains traction during the early Asian session on Monday. The uptick of the pair is bolstered by the softer US Dollar (USD) across the broad. The US inflation data, as measured by the Consumer Price Index (CPI) on Thursday, might offer hints about additional evidence of price pressures. At press time, NZD/USD is trading at 0.6256, gaining 0.19% on the day.

The upbeat US labor data on Friday helps weaken the case for rate cuts from the Federal Reserve (Fed). Traders have moved to bet on five or six rate cuts by the Fed over the course of the year. They are now pricing in a 75% odds of the first cut in March, having fully priced in such a move at the end of last year. US Nonfarm Payrolls (NFP) increased by 216,000 jobs in December from 173,000 in November, above the market consensus of 170,000, the US labor data showed on Friday.

Furthermore, the Unemployment Rate was unchanged at 3.7%. The Average Hourly Earnings climbed 0.4% MoM, better than 0.3% expected, while the annual figure came in at 4.1 YoY in December versus 4.0% in the previous reading, above the consensus of 3.9%.

On the Kiwi front, the stronger-than-expected Chinese economic data last week has boosted the China-proxy New Zealand Dollar (NZD) and acts as a tailwind for NZD/USD. Traders will take more cues from the Chinese data, due later this week. The December Chinese Producer Price Index (PPI) and Consumer Price Index (CPI) will be released on Friday. The upbeat data could provide more support for the Kiwi against the US Dollar.

Market players will focus on the New Zealand Building Permits on Tuesday ahead of the US CPI reports on Thursday. On Friday, the attention will shift to the Chinese CPI and PPI figures. Traders will take cues from these reports and find trading opportunities around the NZD/USD pair.

NZD/USD

Overview
Today last price	0.6258
Today Daily Change	0.0013
Today Daily Change %	0.21
Today daily open	0.6245

Trends
Daily SMA20	0.6256
Daily SMA50	0.6114
Daily SMA100	0.6017
Daily SMA200	0.6093

Levels
Previous Daily High	0.6279
Previous Daily Low	0.6181
Previous Weekly High	0.6339
Previous Weekly Low	0.6181
Previous Monthly High	0.641
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6242
Daily Fibonacci 61.8%	0.6218
Daily Pivot Point S1	0.6191
Daily Pivot Point S2	0.6137
Daily Pivot Point S3	0.6093
Daily Pivot Point R1	0.6289
Daily Pivot Point R2	0.6333
Daily Pivot Point R3	0.6387

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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