NZD/USD loses ground after lower Kiwi Inflation Expectations, edges lower to near 0.6110


Share:
  • NZD/USD extends its losses after the release of Inflation Expectations from New Zealand.
  • RBNZ Inflation Expectations (Q1) rose by 2.5%, down from the previous reading of 2.7%.
  • The US Dollar gains ground ahead of the scheduled release of the US Inflation data.

NZD/USD continues to decline for the second consecutive session, reaching near 0.6110 during the Asian trading session on Tuesday. The New Zealand Dollar (NZD) faces pressure against the US Dollar (USD), partly due to lower Kiwi inflation expectations in the first quarter. RBNZ Inflation Expectations (QoQ) increased by 2.5%, down from the previous reading of 2.7%.

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr testified before the Finance and Expenditure Committee on Monday, emphasizing that inflation remains elevated, prompting the RBNZ to maintain the cash rate at 5.5%. Additionally, RBNZ Deputy Governor (Financial Stability) Christian Hawkesby reiterated the strength of the New Zealand financial system, stating that it can withstand high interest rates. Furthermore, New Zealand Finance Minister Nicola Willis announced that the government budget will be revealed on May 30th.

The US Dollar Index (DXY), which gauges the USD against six major currencies, aims to hold onto its recent gains, climbing to around 104.20. Despite this upward movement, the 2-year and 10-year US bond yields remain at 4.47% and 4.16%, respectively, at the current time. These relatively lower yields may limit the upward momentum of the Greenback.

The NZD/USD pair faces downward pressure as the US Dollar strengthens amid subdued US Treasury yields. Market sentiment remains mixed ahead of the release of US inflation data scheduled for Tuesday, which could influence expectations regarding interest rates.

The US Consumer Price Index (CPI) is projected to moderate, with a year-on-year increase of 2.9% compared to the previous rise of 3.4%. Similarly, the month-over-month rate is expected to remain unchanged at 0.2%. Core CPI YoY is anticipated to rise by 2.9%, down from the previous increase of 3.4%. The monthly core inflation is forecasted to stay consistent at 0.3%.

NZD/USD: important technical levels

Overview
Today last price 0.6105
Today Daily Change -0.0027
Today Daily Change % -0.44
Today daily open 0.6132
 
Trends
Daily SMA20 0.6108
Daily SMA50 0.6184
Daily SMA100 0.6072
Daily SMA200 0.6082
 
Levels
Previous Daily High 0.6153
Previous Daily Low 0.612
Previous Weekly High 0.6159
Previous Weekly Low 0.6037
Previous Monthly High 0.6339
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6133
Daily Fibonacci 61.8% 0.614
Daily Pivot Point S1 0.6117
Daily Pivot Point S2 0.6102
Daily Pivot Point S3 0.6084
Daily Pivot Point R1 0.615
Daily Pivot Point R2 0.6168
Daily Pivot Point R3 0.6183

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD hovers around 1.0850 ahead of US data

EUR/USD hovers around 1.0850 ahead of US data

EUR/USD is ranging at around 1.0850 in the European session on Tuesday. The pair stays supported amid a broadly subdued US Dollar and hawkish comments from ECB President Lagarde. The focus now shifts to the high-impact US economic data. 

EUR/USD News

GBP/USD holds steady below 1.2700, BoE-speak, US data eyed

GBP/USD holds steady below 1.2700, BoE-speak, US data eyed

GBP/USD is keeping its range trade intact below 1.2700 early Tuesday. A softer US Dollar and a cautious market mood are contributing to the bull-bear tug-of-war, as traders await the speeches from the BoE and the Fed policymakers alongside the US macro news. 

GBP/USD News

Gold price remains within striking distance of two-week high ahead of US macro data

Gold price remains within striking distance of two-week high ahead of US macro data

Gold price (XAU/USD) catches fresh bids following the previous day's modest downfall and remains well within the striking distance of over a two-week high touched last Thursday. 

Gold News

XRP price recoups losses as Ripple gears up to reveal blockchain roadmap for 2024

XRP price recoups losses as Ripple gears up to reveal blockchain roadmap for 2024

XRP price is influenced by the developments in Ripple and the updates in the SEC v. Ripple lawsuit. The altcoin climbed past the $0.56 level as the XRPLedger prepares to unveil its roadmap for 2024.

Read more

Calm before the data

Calm before the data

It feels like there is a moment of calm and silence in the aftermath of major tech earnings, investors will decide whether this rally deserves to continue higher straight away. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures