NZD/USD heads into Friday markets on the low side of near-term consolidation

NZD/USD eased to the bottom of a sideways pattern on Thursday.
Resurging fears of fewer Fed cuts bolstered Greenback.
NZ Consumer Confidence, Inflation Expectations recover ground but remain low.

Joshua Gibson FXStreet

NZD/USD descended to the bottom of recent consolidation as broad-market risk appetite turned sour on Thursday after rising US Purchasing Manager Index (PMI) figures re-ignited concerns that sticky inflation from the services sector could keep price growth elevated for much longer than rate-cut-hungry investors had initially hoped. Rate cut expectations knocked lower through the day, dragging risk assets lower and bumping the US Dollar into higher bids on the day.

Forex Today: Data continues to rule the sentiment

The Kiwi is heading into the early Friday market session on the low end, but could find thin support from a slight improvement in New Zealand Consumer Confidence figures. ANZ Roy Morgan Consumer Confidence in May rose to 84.9 from April’s 81.9. Despite the rebound, New Zealand consumer confidence remains on the low side in the aggregate, sticking close to values seen during the pandemic response.

Consumer Inflation Expectations in May also eased further, declining to 3.8% compared to April’s 4.4%. On the other hand, Consumer House Price Inflation rose further to 3.5% from 3.2%.

NZD/USD technical outlook

The Kiwi has been churning sideways recently, with a technical ceiling hardening from 0.6140. Bids are catching technical support from the 200-hour Exponential Moving Average (EMA) near 0.6089.

Daily candlesticks are catching a squeeze pattern into the midrange with the pair trading just north of the 200-day EMA at 0.6070.

NZD/USD hourly chart

NZD/USD daily chart

NZD/USD

Overview
Today last price	0.61
Today Daily Change	0.0003
Today Daily Change %	0.05
Today daily open	0.6097

Trends
Daily SMA20	0.6022
Daily SMA50	0.6003
Daily SMA100	0.6072
Daily SMA200	0.6042

Levels
Previous Daily High	0.6153
Previous Daily Low	0.6083
Previous Weekly High	0.6146
Previous Weekly Low	0.5995
Previous Monthly High	0.6079
Previous Monthly Low	0.5851
Daily Fibonacci 38.2%	0.6126
Daily Fibonacci 61.8%	0.611
Daily Pivot Point S1	0.6069
Daily Pivot Point S2	0.6041
Daily Pivot Point S3	0.5999
Daily Pivot Point R1	0.6139
Daily Pivot Point R2	0.6181
Daily Pivot Point R3	0.6209

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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