NZD/USD Price Analysis: Kiwi prods immediate resistance below 0.6100 on upbeat RBNZ Inflation Expectations

NZD/USD recovers from the lower level in two months but lack follow-through.
RBNZ Inflation Expectations for Q3 improves to 2.83% QoQ versus 2.79% prior.
Impending bull cross on MACD, gradually improving RSI favor corrective bounce but multiple hurdle check Kiwi bulls.

Anil Panchal FXStreet

NZD/USD grinds near intraday high below 0.6100, close to 0.6080 by the press time, as snaps a two-day losing streak while bouncing off the lowest level in two months ahead of Wednesday’s European session. In doing so, the Kiwi pair justifies upbeat prints of the Reserve Bank of New Zealand (RBNZ) Inflation Expectations for the third quarter (Q3) of 2023 amid the US Dollar’s pullback.

Also read: RBNZ Survey: NZ inflation expectations rise to 2.83% in Q3 2023

That said, RBNZ Inflation Expectations improved to 2.83% QoQ for Q3 2023 from 2.79% previous reading, favoring hopes of witnessing a rate hike from New Zealand’s central bank.

The same joins the market’s positioning for the US inflation data and the recent risk-positive headlines about China, to help the NZD/USD poke a one-week-old descending resistance line, around 0.6085 by the press time.

It’s worth noting that the looming bull cross on the MACD and the latest improvement in the RSI (14) line underpin expectations of crossing the 0.6085 immediate hurdle, which in turn could lead the bulls toward the downward-sloping resistance line from mid-July, close to 0.6125 at the latest.

Even so, the NZD/USD bulls remain cautious unless witnessing a successful break of the 10-week-long previous support line surrounding 0.6145.

On the contrary, an area comprising multiple levels marked since May 30, close to 0.6030, quickly followed by May’s bottom of 0.5985, can lure the NZD/USD bears during the pair’s further downside.

NZD/USD: Four-hour chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	0.6076
Today Daily Change	0.0010
Today Daily Change %	0.16%
Today daily open	0.6066

Trends
Daily SMA20	0.6203
Daily SMA50	0.6166
Daily SMA100	0.619
Daily SMA200	0.623

Levels
Previous Daily High	0.6112
Previous Daily Low	0.6035
Previous Weekly High	0.6226
Previous Weekly Low	0.606
Previous Monthly High	0.6413
Previous Monthly Low	0.612
Daily Fibonacci 38.2%	0.6064
Daily Fibonacci 61.8%	0.6082
Daily Pivot Point S1	0.6029
Daily Pivot Point S2	0.5993
Daily Pivot Point S3	0.5952
Daily Pivot Point R1	0.6107
Daily Pivot Point R2	0.6148
Daily Pivot Point R3	0.6184

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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