NZD/USD jumps above 0.64 despite below-forecast New Zealand consumer spending


  • NZD/USD remains bid despite the dismal New Zealand consumer spending data. 
  • Markets expect the RBNZ to deliver a rate cut before the year-end. 
  • The PBOC kept interest rates unchanged at 4.20% earlier today. 

The bid tone around the New Zealand Dollar remains strong, pushing the NZD/USD pair above 0.64 despite the weaker-than-expected New Zealand consumer spending data for September. 

The annualized Credit Card Spending growth slowed to 4.8% in September from 6% in August. The market was expecting spending to rise to 5.1%. On a month-on-month basis, the spending fell 0.1%, having risen by an upwardly revised 2.5% in August. 

The weaker-than-expected spending figures will likely bolster the dovish Reserve Bank of New Zealand (RBNZ) expectations. 

The market expects the central bank to deliver an end-of-the-year rate cut, having stunned with a 50 basis point rate cut to 1% in August. 

Even so, the NZD/USD pair is flashing green for the third straight day and looks set for a convincing move above 0.645 with key indicators like the 14-day relative strength index (RSI) reporting bullish conditions with an above-50 print for the first time since July. 

It is worth noting that the People's Bank of China kept the one-year loan prime rate unchanged at 4.20%, contradicting expectations for a minor cut to 4.15%. So far, however, the NZD and other Commodity Dollars have shown resilience to PBOC's reluctance to cut rates. 

Technical Levels

NZD/USD

Overview
Today last price 0.6401
Today Daily Change 0.0014
Today Daily Change % 0.22
Today daily open 0.6387
 
Trends
Daily SMA20 0.6301
Daily SMA50 0.6348
Daily SMA100 0.6485
Daily SMA200 0.6613
 
Levels
Previous Daily High 0.6391
Previous Daily Low 0.6342
Previous Weekly High 0.6391
Previous Weekly Low 0.624
Previous Monthly High 0.6452
Previous Monthly Low 0.6249
Daily Fibonacci 38.2% 0.6372
Daily Fibonacci 61.8% 0.6361
Daily Pivot Point S1 0.6356
Daily Pivot Point S2 0.6324
Daily Pivot Point S3 0.6307
Daily Pivot Point R1 0.6405
Daily Pivot Point R2 0.6422
Daily Pivot Point R3 0.6454

 

 

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