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NZD/USD moves below 0.5800, aims to reach November’s low

  • NZD/USD weakens as investors ease expectations for a rate hike by the RBNZ.
  • Geopolitical uncertainties weigh on the New Zealand Dollar.
  • Risk sentiment worsens on Israel's PM Netanyahu's statement about a ground assault in Gaza.
  • The surge in US Treasury yields reinforces the US Dollar.

NZD/USD marks an 11-month low, hovering around 0.5790 during the Asian session on Thursday. The pair could reach November’s low during the session.

The Kiwi Dollar grapples with pressure, a predicament exacerbated by the recent release of headline Consumer Price Index (CPI) data. This sentiment is prompting investors to ease their expectations for an interest rate hike by the Reserve Bank of New Zealand (RBNZ).

New Zealand’s third-quarter CPI rose to 1.8%, falling short of the anticipated 2.0%. The yearly rate experienced a deceleration to 5.6% from the previous quarter's 6.0%, further undershooting consensus estimates of a 5.9% reading.

Geopolitical uncertainties cast a shadow on the New Zealand Dollar, as risk sentiment takes a hit. The latest trigger seems to be Israel's Prime Minister Benjamin Netanyahu's statement about a potential ground assault in Gaza, with the timing contingent on consensus. This reinforces the prevailing risk-off sentiment, contributing to the downward pressure on the NZD/USD pair.

Additionally, Iran's Foreign Minister Hossein Amir-Abdollahian visited the US to discuss the conflict between Hamas and Israel, according to Iranian media.

The US Dollar Index (DXY) continues to gain ground, bidding higher around 106.80 at the time of writing. The US Dollar (USD) is bolstered by the recent surge in US Treasury yields, aiming to revisit above 5.0%. By the press time, the 10-year Treasury note stood at 4.97%.

However, the NZD/USD pair's losses might find some limitation amid the varied comments from US Federal Reserve (Fed) officials in the previous days, concerning the trajectory of interest rates. Atlanta Fed President Raphael Bostic indicated that a rate cut before the middle of next year is improbable, and Fed Philadelphia President Patrick Harker voiced a preference for keeping interest rates unchanged.

US Q3 Gross Domestic Product (GDP) figures could provide a crucial snapshot of economic performance later in the North American session. Following that, Friday unveils the Core Personal Consumption Expenditures (PCE) data, offering insights into changes in the prices of goods and services in the United States. In the Kiwi realm, all eyes are on Friday's Consumer Confidence, a key indicator for gauging sentiment and economic outlook.

NZD/USD: additional levels to watch

Overview
Today last price0.5786
Today Daily Change-0.0016
Today Daily Change %-0.28
Today daily open0.5802
 
Trends
Daily SMA200.5921
Daily SMA500.5924
Daily SMA1000.6041
Daily SMA2000.6141
 
Levels
Previous Daily High0.5872
Previous Daily Low0.58
Previous Weekly High0.5931
Previous Weekly Low0.5815
Previous Monthly High0.605
Previous Monthly Low0.5847
Daily Fibonacci 38.2%0.5828
Daily Fibonacci 61.8%0.5844
Daily Pivot Point S10.5777
Daily Pivot Point S20.5753
Daily Pivot Point S30.5705
Daily Pivot Point R10.5849
Daily Pivot Point R20.5897
Daily Pivot Point R30.5921

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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