NZD/USD holds on to 0.5800 despite a buoyant US Dollar

NZD/USD seesaws around 0.5800 amidst overall US Dollar strength.
A mixed sentiment keeps some high-beta currencies trending higher, though capped by a buoyant greenback.
The US 3-month/10-year yield curve is inverted, exacerbating recession fears.

Christian Borjon Valencia FXStreet

The NZD/USD slightly advanced during the mid-North American session, despite overall US Dollar strength, though the New Zealand dollar, after reaching a fresh three-day low, bounced off and reclaimed the 0.5800 figure. At the time of writing, the NZD/USD is trading at 0.5812, almost flat.

NZD/USD fluctuates as investors get ready for the Fed

US equities are trading within a mixed tone due to the deteriorated sentiment. Some US Federal Reserve regional banks unveiled PMI and Business Indices, namely the Chicago and Dallas Fed. The Chicago manufacturing PMI came at 45.2, lower than the 47.0 estimates, while the Dallas Fed Manufacturing Business Index dropped even further to -19.4 from -17.4 expected, exacerbating US recession fears around the financial markets.

Additionally, traders should be aware that the spread between the US 3-month/10-year turned negative, meaning that the yield curve inverted for the first time since March of 2020, exacerbating US recession fears.

In the meantime, geopolitical jitters like Russia’s blocking Ukraine from exporting grains, alongside a weaker-than-estimated China’s PMI figures, would likely keep the safe-haven US Dollar underpinned, even though the US economy is likely to head into a recession.

Also, the lack of tier 1 economic data keeps traders focused on the Federal Reserve’s decision. However, NZD/USD traders should be aware that November 1 ISM Manufacturing PMI for October could be the first domino of some usual “leading” indicators to flash signals of an impending slowdown in the US. Also, the JOLT’s report and the ADP Employment Change, ahead of the Fed’s policy meeting, would shed some light regarding the future outcome of the US Dollar.

NZD/USD Daily Chart

NZD/USD

Overview
Today last price	0.582
Today Daily Change	0.0092
Today Daily Change %	1.61
Today daily open	0.5728

Trends
Daily SMA20	0.5682
Daily SMA50	0.5866
Daily SMA100	0.6062
Daily SMA200	0.6362

Levels
Previous Daily High	0.5874
Previous Daily Low	0.5728
Previous Weekly High	0.5874
Previous Weekly Low	0.5657
Previous Monthly High	0.6162
Previous Monthly Low	0.5565
Daily Fibonacci 38.2%	0.5784
Daily Fibonacci 61.8%	0.5818
Daily Pivot Point S1	0.5679
Daily Pivot Point S2	0.5631
Daily Pivot Point S3	0.5533
Daily Pivot Point R1	0.5825
Daily Pivot Point R2	0.5923
Daily Pivot Point R3	0.5971

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.