• NZD/USD fails to overcome Fed-inspired losses even if trade, sentiment numbers at home are upbeat.
  • New Zealand’s Q3 Westpac Consumer Survey came in firmer, trade deficit increased in August.
  • Fed’s rate hike, fears of economic pain join pessimism from Russia, China to favor the US dollar buying.
  • Light calendar at home, emphasizes risk catalysts for fresh impulse.

NZD/USD holds lower ground at 0.5845 while keeping the Fed-inspired losses after a slew of New Zealand (NZ) data during early Asian session on Thursday. The kiwi pair’s lack of respecting the mixed outcome could be linked to the market’s pessimism amid fears of recession and geopolitical woes.

New Zealand’s trade deficit widened to $12.28B during August versus $11.97B prior. Further details suggest that the Imports grew to $7.93B from $7.76B previous readings while the Exports dropped to $5.48B compared to $6.35B previous announcements.

Earlier in the day, the nation’s Westpac Consumer Survey data for the third quarter (Q3) probed the NZD/USD bears while matching 87.6 forecasts versus 78.7 prior. “Consumer confidence in New Zealand improved in the third quarter but the mood in the country remains grim,” said Reuters following the data release.

Elsewhere, the Fed matched market’s expectations of announcing 75 basis points (bps) of rate hike. The Fed’s action was the third one in a line of such kind, as it wants to tame inflation fears even at the cost of a “sustained period of below-trend growth” and a softening in the labor market. Fed Chairman Jerome Powell also signaled that the way to tame inflation isn’t painless ahead. While the Fed matched market forecasts, the economic fears surrounding the rate hikes and expectations of another 0.75% increase in November kept the US Dollar on the front foot, despite marking heavy volatility around the announcements.

It should be noted that the Russian President Vladimir Putin’s announcement to mobilize partial troops also reignited the Ukraine-linked geopolitical fears and drowned the GBP/USD prices. Russian President Putin threatened the West on Wednesday, noting that “We have lots of weapons to reply, it is not a bluff.” In a reaction, German Economy Minister Robert Habeck said, “Partial mobilization of Russian troops is a bad and wrong development,” adding that the “Government is in consultations on next step.” Jens Stoltenberg, NATO's Secretary General, told Reuters that Russian President Putin's announcement of military mobilization and threat to use nuclear weapons was "dangerous and reckless rhetoric."

While portraying the mood, Wall Street ended the day on a negative tone while the US Treasury yields also dropped amid the market’s rush for risk safety. It’s worth noting that the S&P 500 Futures print 0.50% losses at the latest.

Moving on, NZD/USD traders may witness a lack of action amid a light calendar and the post-Fed calm. Even so, risk catalysts surrounding Russia and China might entertain the pair traders ahead of the US session wherein the second-tier numbers may direct intraday moves.

Technical analysis

NZD/USD is vulnerable to refreshing the multi-month low unless bouncing back beyond the support-turned-resistance line from May, around 0.5915 by the press time.

Additional important levels

Overview
Today last price 0.5846
Today Daily Change -0.0046
Today Daily Change % -0.78%
Today daily open 0.5892
 
Trends
Daily SMA20 0.6072
Daily SMA50 0.6188
Daily SMA100 0.6265
Daily SMA200 0.6515
 
Levels
Previous Daily High 0.5976
Previous Daily Low 0.5885
Previous Weekly High 0.6162
Previous Weekly Low 0.594
Previous Monthly High 0.647
Previous Monthly Low 0.6101
Daily Fibonacci 38.2% 0.592
Daily Fibonacci 61.8% 0.5941
Daily Pivot Point S1 0.5859
Daily Pivot Point S2 0.5827
Daily Pivot Point S3 0.5768
Daily Pivot Point R1 0.595
Daily Pivot Point R2 0.6009
Daily Pivot Point R3 0.6041

 

 

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