NZD/USD pulls away from multi-month highs, trades above 0.67


  • Inflation in New Zealand rises to 0.6% in the second quarter.
  • US Dollar Index climbs above 97, erases last week's gains.
  • Retails sales data and Fedspeak will be watched closely in the second half.

Boosted by the upbeat GDP and retail sales data from China, the NZD/USD pair started the week on a strong note and advanced to its highest level since mid-April at 0.6738 during the Asian trading hours on Tuesday but struggled to preserve its bullish momentum. 

The data published by the Statistics New Zealand today revealed that the Consumer Price Index (CPI) in the second quarter came in at 0.6% on a quarterly basis following the previous quarter's reading of 0.1% and improved to 1.7% on a yearly basis from 1.5%. Although these numbers came in line with the market expectation, they didn't seem to be strong enough to force the Reserve Bank of New Zealand to refrain from making a rate cut.

Commenting on the data, "This outcome should do little to alter expectations for the Bank to cut next month following a series of poor PSIs and PMIs that suggest NZ will get sub 2% growth," TD Securities analysts noted. "In terms of details, the 5.8%/q rise in fuel prices led the increase in headline inflation and rents rose +1%/q, the fastest pace since 2008.”

However, with the greenback continuing to recover the losses it suffered last week, the pair reversed its course and erased almost all of its daily gains.

Despite a lack of fundamental drivers, the US Dollar Index broke above the 97 mark and pushed higher ahead of retail sales data and speeches by FOMC members Bostic, Evans, and Chairman Powell. At the moment, the DXY is up 0.3% on a daily basis at 97.22.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6722
Today Daily Change 0.0003
Today Daily Change % 0.04
Today daily open 0.6719
 
Trends
Daily SMA20 0.6646
Daily SMA50 0.6595
Daily SMA100 0.668
Daily SMA200 0.6716
Levels
Previous Daily High 0.6735
Previous Daily Low 0.6686
Previous Weekly High 0.6699
Previous Weekly Low 0.6567
Previous Monthly High 0.6722
Previous Monthly Low 0.6487
Daily Fibonacci 38.2% 0.6716
Daily Fibonacci 61.8% 0.6704
Daily Pivot Point S1 0.6692
Daily Pivot Point S2 0.6664
Daily Pivot Point S3 0.6642
Daily Pivot Point R1 0.6741
Daily Pivot Point R2 0.6763
Daily Pivot Point R3 0.679

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD holding onto gains amid trade wars, ahead of German IFO

EUR/USD is trading around 1.1150, consolidating its gains after the escalation in US-Sino trade wars sent US yields and the greenback lower. German IFO Business Climate is next.

EUR/USD News

GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.

GBP/USD News

USD/JPY drops back below 105.50 amid US-Japan trade news

USD/JPY filled in the bearish opening gap and jumped to 105.78 highs amid upbeat comments from Chinese VIce-Premier Liu on trade before reversing sharply below the 105.50 level following reports on US-Japan trade progress. 

USD/JPY News

Gold: Risk-off rally stalls after US, China aim to calm trade war fears

Having surged to the fresh high since April 2013, Gold declines to the intra-day low of $1,538.50, before taking rounds to $1541.60, by the press time of early Monday. China shows readiness to have a calm discussion with the US.

Gold News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •