NZD/USD Price Analysis: Faces pressure near 0.6300 ahead of US Inflation test

NZD/USD finds sell-off near 0.6300 as focus shifts to US core PCE price index data.
A sticky US core PCE report could offer some support to the US Dollar.
The Kiwi pair trades in an upward-sloping chart pattern.

Sagar Dua FXStreet

The NZD/USD pair faces selling pressure near the round-level resistance of 0.6300 in the early London session. The Kiwi asset is expected to remain lackluster ahead of the United States core Personal Consumption Expenditure price index (PCE) data for November, which will be published at 13:30 GMT.

Investors see mild softness in the underlying inflation data as interest rates by the Federal Reserve (Fed) have been in the restrictive trajectory. According to the estimates, monthly core PCE data grew at a steady pace of 0.2%. The annual core PCE data is expected to decelerate to 3.3% vs. the former reading of 3.5%.

The US Dollar Index (DXY) falls back to its crucial support of 101.80, weighed down by deepening rate cut expectations by the Federal Reserve (Fed).

Meanwhile, the New Zealand Dollar would continue to perform better against the US Dollar as the Reserve Bank of New Zealand (RBNZ) is expected to keep interest rates high for a longer period.

NZD/USD trades in a Rising Channel chart pattern on a two-hour scale in which each pullback is considered as a buying opportunity by the market participants. Upward-sloping 20-period Exponential Moving Average (EMA) at 0.6256 will continue to provide support to the New Zealand Dollar bulls.

A bullish momentum would emerge if the Relative Strength Index (RSI) (14) manages to shift into the bullish range of 60.00-80.00 confidently.

The NZD/USD pair may witness a fresh rally after a decisive break above Wednesday’s high around 0.6300. An occurrence of the same would allow it to refresh its five-month high near 0.6350. Further upside would expose it towards July 14 high around 0.6400.

On the contrary, a breakdown below December 14 low near 0.6168 would drag the asset towards November 30 low near 0.6121, followed by December 13 low near 0.6084.

NZD/USD two-hour chart

NZD/USD

Overview
Today last price	0.6278
Today Daily Change	-0.0014
Today Daily Change %	-0.22
Today daily open	0.6292

Trends
Daily SMA20	0.6173
Daily SMA50	0.6017
Daily SMA100	0.5985
Daily SMA200	0.609

Levels
Previous Daily High	0.6296
Previous Daily Low	0.6238
Previous Weekly High	0.6287
Previous Weekly Low	0.6084
Previous Monthly High	0.6208
Previous Monthly Low	0.5788
Daily Fibonacci 38.2%	0.6274
Daily Fibonacci 61.8%	0.626
Daily Pivot Point S1	0.6255
Daily Pivot Point S2	0.6217
Daily Pivot Point S3	0.6197
Daily Pivot Point R1	0.6313
Daily Pivot Point R2	0.6333
Daily Pivot Point R3	0.6371

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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