NZD/USD posts modest gains above the mid-0.6000s amid risk-on impulse

NZD/USD trades with mild gains around 0.6077 on Tuesday.
FOMC members emphasized that early rate cuts are probably not appropriate.
New Zealand's Business NZ PSI fell back into contraction in December after reaching a six-month high in November.

Lallalit Srijandorn FXStreet

The NZD/USD pair posts modest gains above the mid-0.6000s during the early Asian trading hours on Tuesday. The upside of the pair remains capped as investors remain concerned about a potential downturn in the property sector, a slowing economy, and subdued investor sentiment in China. NZD/USD currently trades near 0.6077, up 0.03% for the day.

FOMC members cautioned that early rate cuts are probably not appropriate and that the committee will need to be doubly sure that inflation is settling sustainably around 2.0% before cutting interest rates. San Francisco Federal Reserve Bank President Mary Daly said on Friday that the Fed has a lot of work left to do on bringing inflation back down to the 2% target, and it’s premature to think interest-rate cuts are around the corner.

The latest data from Business NZ revealed on Tuesday that New Zealand's Business NZ Performance of Services Index (PSI) came in at 48.8 in December from 51.2 in November. The Business NZ Head of Research Stephen Toplis stated that the softening PSI is bad news for both near-term growth and employment in New Zealand.

Additionally, concerns about China’s growth momentum remain amid a protracted property crisis, sluggish consumer and business confidence, and poor global growth. This, in turn, exerts some selling pressure on the China-proxy New Zealand Dollar (NZD) and acts as a headwind for NZD/USD.

Looking ahead, the US Richmond Fed Manufacturing Index for January will be due on Tuesday. On Wednesday, New Zealand’s Consumer Price Index for the fourth quarter (Q4) will be in the spotlight. Traders will take cues from these figures and find trading opportunities around the pair.

NZD/USD

Overview
Today last price	0.6077
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.6075

Trends
Daily SMA20	0.6227
Daily SMA50	0.6175
Daily SMA100	0.6043
Daily SMA200	0.6089

Levels
Previous Daily High	0.6139
Previous Daily Low	0.6073
Previous Weekly High	0.6249
Previous Weekly Low	0.6088
Previous Monthly High	0.641
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6098
Daily Fibonacci 61.8%	0.6114
Daily Pivot Point S1	0.6052
Daily Pivot Point S2	0.603
Daily Pivot Point S3	0.5986
Daily Pivot Point R1	0.6118
Daily Pivot Point R2	0.6162
Daily Pivot Point R3	0.6184

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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