NZD/USD drops back to 0.6450 on downbeat NZ Q1 Retail Sales, focus on US PMIs, Fed’s Powell

  • NZD/USD takes offers to renew intraday low, consolidates recent gains around 13-day top.
  • New Zealand Q1 Retail Sales flashed -0.50% figures versus 8.3% prior growth.
  • Firmer sentiment, repeated Fedspeak keeps US dollar on the back foot.
  • First readings of S&P Global PMIs for May, speech from Fed Chairman Powell can entertain traders ahead of RBNZ.

NZD/USD stands on slippery grounds, snapping a three-day uptrend at a fortnight top, as New Zealand’s (NZ) Q1 2022 Retail Sales disappoints Kiwi bulls ahead of Wednesday’s key RBNZ. That said, the quote renews a daily low of around 0.6450 during the initial hour of Tuesday’s Asian session.

New Zealand’s first quarter (Q1) 2022 Retail Sales surprised kiwi bulls with a -0.5% QoQ figure versus the downwardly revised previous readings of 8.3% QoQ (from 8.6%). That said, Retail Sales ex Autos also dropped to 0.0% from 6.8% prior during the stated period.

The downbeat numbers raise allow NZD/USD bulls to better prepare for the Reserve Bank of New Zealand’s (RBNZ) widely anticipated rate hike of 50 basis points (bps).

It’s worth noting that a negative start of the day by the S&P 500 Futures, despite firmer closing of the Wall Street benchmarks, also weigh on the Kiwi prices of late.

On Monday, the NZD/USD rallied to a three-week high amid broad US dollar weakness, as well as optimism in the market during a light calendar. In doing so, the US Dollar Index (DXY) extended the first weekly loss in seven as mixed covid signals from China, mostly positive, join the repeated Fedspeak around a 50 bps rate-hike, contrary to the recently hawkish comments from the ECB policymakers. Also weighing on the greenback were the headlines from Japan where US President Joe Biden mentioned that he is considering reducing tariffs on China.

Looking forward, the preliminary readings of the S&P Global Manufacturing and Services PMIs for May will be crucial amid hopes of stabilization in the market’s confidence. Also, Fed’s Powell is always the key catalyst to move the markets and can do so if refrained from the usual support for a “normal” rate hike trajectory. Additionally, headlines from the Quad Summit in Tokyo and concerning the covid will also be important for NZD/USD traders to watch for fresh impulse.

Above all, tomorrow’s RBNZ Interest Rate Decision will be crucial as markets do expect a 50 bps move but data from New Zealand has been mixed of late.

Technical analysis

NZD/USD trades above the 21-DMA, around 0.6400 at the latest, for the first time in seven weeks. The weekly recovery move from a two-year low also gains support from the MACD and RSI (14) to direct buyers towards January’s low surrounding 0.6530.

Additional important levels

Today last price 0.6467
Today Daily Change 0.0076
Today Daily Change % 1.19%
Today daily open 0.6391
Daily SMA20 0.6404
Daily SMA50 0.6679
Daily SMA100 0.6704
Daily SMA200 0.6838
Previous Daily High 0.6415
Previous Daily Low 0.6363
Previous Weekly High 0.6417
Previous Weekly Low 0.6229
Previous Monthly High 0.7035
Previous Monthly Low 0.6451
Daily Fibonacci 38.2% 0.6395
Daily Fibonacci 61.8% 0.6383
Daily Pivot Point S1 0.6364
Daily Pivot Point S2 0.6337
Daily Pivot Point S3 0.6312
Daily Pivot Point R1 0.6416
Daily Pivot Point R2 0.6442
Daily Pivot Point R3 0.6469



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. 


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. 


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!