- 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
|Today last price||0.6722|
|Today Daily Change||0.0003|
|Today Daily Change %||0.04|
|Today daily open||0.6719|
|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.