NZD/USD picks up to test resistance at the 0.6130 area

The Kiwi finds buyers at 0.6100 although it remains capped below 0.6130 so far.
Strong US data and concerns about China are weighing on the NZD.
US Dollar losses are likely to remain limited ahead of US CPI and the Fed’s meeting.

Guillermo Alcala FXStreet

The US Dollar staged a recovery against the New Zealand Dollar after US NFP data from Friday highlighted the resilience of the US labour market and curbed hopes of Fed cuts in early 2024.

Data released over the weekend showed that China’s Consumer Prices grew at their slowest pace in three years, adding concerns about the frail momentum of the world’s second-largest economy and hurting the China-proxy NZD.

The calendar is light today with traders awaiting Tuesday’s US CPI data and Wednesday’s Fed’s monetary policy decision to shed some more light on the bank’s next monetary policy steps.

Technical indicators are turning lower, with NZD/USD price action below the 4h 50 SMA and hovering above the 100 SMA. Resistance at 0.6130 is capping bulls so far, closing the path towards 0.6190 and 0.6225.

Failure to regain 0.6130 would increase pressure towards 0.6050 and 0.6000.

Technical levels to watch

NZD/USD

Overview
Today last price	0.6118
Today Daily Change	-0.0003
Today Daily Change %	-0.05
Today daily open	0.6121

Trends
Daily SMA20	0.6079
Daily SMA50	0.5974
Daily SMA100	0.5981
Daily SMA200	0.6088

Levels
Previous Daily High	0.619
Previous Daily Low	0.6103
Previous Weekly High	0.6223
Previous Weekly Low	0.6103
Previous Monthly High	0.6208
Previous Monthly Low	0.5788
Daily Fibonacci 38.2%	0.6136
Daily Fibonacci 61.8%	0.6156
Daily Pivot Point S1	0.6086
Daily Pivot Point S2	0.6051
Daily Pivot Point S3	0.6
Daily Pivot Point R1	0.6173
Daily Pivot Point R2	0.6224
Daily Pivot Point R3	0.6259

(This story was corrected on December 11 at 15:01 GMT to say that NZD/USD remains capped below 0.6130, not 1.6130, and that resistance at 0.6130 is capping bulls, not support).

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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