NZD/USD is creeping lower into the closing hours of Wall Street


  • NZD/USD bears move in as profit-taking ensues. 
  • The markets will look to he the NZ Half Year Economic and Fiscal Update on Wednesday and the Fed.

NZD/USD is higher by some 1.29% on the day as the markets take profits following a volatile spell on Wall Street and US data that showed softer inflation pressures in the month of November.

Both the Australian and New Zealand Dollars were tracking global shares higher into the US Consumer Price Index and rallied strongly when the data pointed towards a Federal Reserve pivot. 

US CPI below the mark

  • US CPI MoM Nov: 0.1% (est 0.3%, prev 0.4%).
  • US CPI Ex Food And Energy MoM Nov: 0.2% (est 0.3%, prev 0.3%).
  • US CPI YoY Nov: 7.1% (est 7.3%, prev 7.7%).
  • US CPI Ex Food And Energy YoY Nov: 6.0% (est 6.1%, prev 6.3%).

The Consumer Price Index has led to the markets pricing the terminal Fed rate down to 4.86% vs 4.98% prior to the report. Consequently, US stocks on Wall Street opened bid in the cash market with the NASDAQ jumping over 400 points and rallying over 3.3%. However, there has been a sharp turnaround in markets that have resulted in a reversal in the Kiwi as well. 

 ''This is likely just the first leg of volatility to be expected this week, with the Fed decision,'' analysts at ANZ Bank argued. ''Markets are now obviously going into it with a very dovish mindset – that’ll be fine if the Fed are dovish, but that doesn’t align at all well with recent comms, especially with US services inflation still rising, and the labour market so tight, and we may be in for a bumpy ride.''

''We get the Half Year Economic and Fiscal Update today. This isn’t usually something FX markets watch, but if we do get extra bond supply, it could drive NZ interest rates up further, and that might be viewed in some quarters as a positive for the NZD.''

NZD/USD

Overview
Today last price 0.6463
Today Daily Change 0.0077
Today Daily Change % 1.21
Today daily open 0.6386
 
Trends
Daily SMA20 0.6261
Daily SMA50 0.5967
Daily SMA100 0.6035
Daily SMA200 0.6278
 
Levels
Previous Daily High 0.6423
Previous Daily Low 0.6365
Previous Weekly High 0.6444
Previous Weekly Low 0.6302
Previous Monthly High 0.6314
Previous Monthly Low 0.5741
Daily Fibonacci 38.2% 0.6387
Daily Fibonacci 61.8% 0.6401
Daily Pivot Point S1 0.636
Daily Pivot Point S2 0.6334
Daily Pivot Point S3 0.6303
Daily Pivot Point R1 0.6418
Daily Pivot Point R2 0.6449
Daily Pivot Point R3 0.6475

 

 

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