NZD/USD in wait-and-see mode just under 0.6700 level ahead of Fed meeting, key NZ CPI data


  • NZD/USD is in wait-and-see mode just under 0.6700 ahead of the Fed policy announcement and key NZ CPI data.
  • Some have warned that the US dollar might see some post-Fed profit-taking selling/a “sell the fact” reaction.

With FX markets having entered their typical pre-Fed policy announcement lull and the US dollar thus rangebound below recent highs, NZD/USD has been able to stabilise just below the 0.6700 level, comfortably above earlier weekly lows in the 0.6660 region. A slight improvement in the YoY rate of New Zealand Credit Card Spending growth to 1.2% in December from -0.4% in November, as revealed by data during the Asia Pacific session, didn’t trigger any notable FX market reaction. Nor did the latest US trade balance figures, despite the monthly trade deficit posting a surprise increase to nearly $101B in December versus expectations for a drop to $96.1B from $98.04B in November.

US dollar traders are unsurprisingly keeping their powder dry with the Fed expected to give the green light to multiple rate hikes in 2022 and offer up some more information on potential quantitative tightening plans. New Zealand markets also await the release of highly important domestic data during the early hours of the Thursday Asia Pacific session, with the Q4 2021 Consumer Price Inflation report due at 2145GMT. NZD has been unable to benefit from RBNZ hawkishness in recent months, with the bank hiking rates by 25bps on two occasions since October and expected to implement further hikes in 2022. But some might still hope that, should Thursday’s CPI data surprise to the upside, there might be room for hawkish RBNZ bets to bolster the kiwi.

Ultimately though, NZD/USD fate will most likely be determined for the rest of this week by USD flows and risk appetite, both of which have been mostly bearish for the pair in recent sessions. Indeed, NZD/USD fell under 0.6700 this week for the first time since November 2020 and, from a technical perspective, the door is open for a grind lower to the next key area of support near 0.6500. Some have warned that the US dollar might see some post-Fed profit-taking selling/a “sell the fact” reaction, which could offer some support to the pair and help it reclaim the 0.6700 handle.

NZD/Usd

Overview
Today last price 0.6687
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.6688
 
Trends
Daily SMA20 0.6784
Daily SMA50 0.681
Daily SMA100 0.6935
Daily SMA200 0.7009
 
Levels
Previous Daily High 0.6711
Previous Daily Low 0.666
Previous Weekly High 0.6827
Previous Weekly Low 0.6707
Previous Monthly High 0.6891
Previous Monthly Low 0.6701
Daily Fibonacci 38.2% 0.6679
Daily Fibonacci 61.8% 0.6691
Daily Pivot Point S1 0.6662
Daily Pivot Point S2 0.6636
Daily Pivot Point S3 0.6611
Daily Pivot Point R1 0.6712
Daily Pivot Point R2 0.6737
Daily Pivot Point R3 0.6763

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD hovering around 0.7050 amid the greenback’s sell-off

AUD/USD hovering around 0.7050 amid the greenback’s sell-off

The Australian dollar shrugged off negative local data and reached a fresh weekly high against its American rival at 0.7072. The pair preserves its strength, despite the poor performance of global indexes indicating prevalent fear.

AUD/USD News

EUR/USD retains gains and hovers near 1.0600

EUR/USD retains gains and hovers near 1.0600

EUR/USD peaked at 1.0607, now trading in the 1.0580 price zone. The rally was all about the broad greenback’s weakness despite demand for safety continues. Soft US data added to the bullish case.

EUR/USD News

Dollar’s sell-off underpins gold

Dollar’s sell-off underpins gold

Gold is up to on Thursday, trading above $1,840 after hitting an intraday high of $1,849.18. The dollar changed course after soaring on Wednesday and is in franc decline across the FX board. However, action in stock markets is choppy. 

Gold News

Cardano is still on pace to retest $0.40, but bears shouldn't get too excited

Cardano is still on pace to retest $0.40, but bears shouldn't get too excited

Cardano is on professional traders' urgent watchlist as the digital asset could enter a mid-term bottom in the $0.45 zone before rallying upwards towards $0.60. ADA, like several cryptos, has been in a steep bear rally, which demands the need for balance and proportion.  

Read more

Warning signs in China's economic outlook as COVID-19 spreads

Warning signs in China's economic outlook as COVID-19 spreads

New variables both within and outside of China in 2022 have placed the country's economy under new pressure. In the first quarter, its economic growth rate was only 4.8%, which was 0.7 percentage points lower than the annual economic growth target of 5.5%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures