NZD/USD marches towards 0.6500 despite renewed NZ recession fears, US PCE eyed


  • NZD/USD is advancing towards 0.6500 as DXY weakness ahead of US PCE.
  • The antipodean is performing stronger despite renewed fears of recession.
  • A consecutive 50 bps interest rate hike has been announced by the RBNZ.

The NZD/USD pair has displayed a bullish open drive move in the early Tokyo session, following a bullish Wednesday. The asset is rising swiftly after hitting a low of 0.6418. The kiwi bulls got strengthened after the Reserve Bank of New Zealand (RBNZ) elevated its Official Cash Rate (OCR) by 50 basis points (bps).  

To combat the soaring inflation, the RBNZ announced a consecutive interest rate hike by 50 bps on Wednesday. The RBNZ is not taking the bullet and passing on the impact of mounting inflationary pressures. Officially, the OCR has reached 2% and the central bank sees more policy tightening in order to curb the price pressures. In the first quarter of CY2022, the annual Consumer Price Index (CPI) was recorded at 6.9%, significantly higher than the targeted boundary of 2%.

While deploying its quantitative measures to safeguard the economy from galloping price pressure, the RBNZ has pressed the recession button. RBNZ Governor Adrian Orr in his speech dictated that a period of recession cannot be ruled out however he is not predicting one. The economy will observe the growth headwinds as elevating interest rates will tighten the liquidity leakage into the economy.

Meanwhile, the US dollar index (DXY) is dragging lower and may hit the round-level support of 102.00. The market participants are cautious ahead of the release of the Core Personal Consumption Expenditure (PCE). A stabled figure of 7% is expected from the core PCE numbers.

NZD/USD

Overview
Today last price 0.6485
Today Daily Change 0.0014
Today Daily Change % 0.22
Today daily open 0.6471
 
Trends
Daily SMA20 0.6397
Daily SMA50 0.6674
Daily SMA100 0.6701
Daily SMA200 0.6835
 
Levels
Previous Daily High 0.648
Previous Daily Low 0.6423
Previous Weekly High 0.6417
Previous Weekly Low 0.6229
Previous Monthly High 0.7035
Previous Monthly Low 0.6451
Daily Fibonacci 38.2% 0.6458
Daily Fibonacci 61.8% 0.6445
Daily Pivot Point S1 0.6436
Daily Pivot Point S2 0.6401
Daily Pivot Point S3 0.6379
Daily Pivot Point R1 0.6493
Daily Pivot Point R2 0.6515
Daily Pivot Point R3 0.655

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures