NZD/USD pulls back from weekly highs amid mixed US inflation data, dovish Fed remarks


Share:
  • NZD/USD recoils to 0.6021 after reaching a weekly peak, influenced by a strengthening USD.
  • US PPI data exceeds expectations, introducing a complex layer to the ongoing inflation dialogue.
  • Contrasting stances among Fed officials and RBNZ’s rate would keep NZD/USD traders uncertain.

NZD/USD retreats after hitting a weekly high of 0.6055 due to a mixed market impulse witnessed in the North American session that bolstered appetite for the Greenback (USD). Speculations of the US Federal Reserve (Fed) forgetting a rate hike, as dovish comments and neutral postures amongst officials emerged. The pair exchanges hands at around 0.6021.

Kiwi Dollar tempers gain as USD was bolstered by US PPI data

US economic data revealed by the Department of Labor (DoL) showed that September’s inflation in the producer side was higher than expected and, in some cases, above August’s figures. The Producer Price Index (PPI) rose by 2.2% YoY, exceeding August and forecasts of 1.6%, while the core PPI rose by 2.7%, above projections and the previous month.

Recently, Federal Reserve officials have adopted a neutral stance; of late, Fed Governor Christopher Waller said the US central bank can watch and see developments on rates, adding that financial markets tightening “would do some of the work for us.” Earlier, Fed Governor Michelle Bowman said that she favors another rate hike as inflation remains above the Fed’s 2% target.

Given the backdrop, money market futures do not expect another rate hike by the Fed, as shown by the CME FedWatch Tool.

On the New Zealand (NZ) front, the Reserve Bank of New Zealand's (RBNZ) decision to keep rates unchanged at 5.5% could undermine its appeal. The RBNZ said that rates need to be maintained at a restrictive level.

NZD/USD Price Analysis: Technical outlook

The NZD/USD daily chart portrays the pair as neutral to downward biased after testing the latest cycle high of 0.6048, which was briefly pierced and could pave the way to test 0.6100. if the pair decisively breaks the latter, that could pave the way to test the 200-day moving average (DMA). Despite challenging 0.6048, price action in the last couple of days is forming a bearish harami candlestick chart pattern, which, if confirmed, could open the door for the BZD/USD to dive below 0.6000.

NZD/USD

Overview
Today last price 0.6021
Today Daily Change -0.0025
Today Daily Change % -0.41
Today daily open 0.6046
 
Trends
Daily SMA20 0.5949
Daily SMA50 0.5957
Daily SMA100 0.6061
Daily SMA200 0.6167
 
Levels
Previous Daily High 0.605
Previous Daily Low 0.5993
Previous Weekly High 0.6009
Previous Weekly Low 0.587
Previous Monthly High 0.605
Previous Monthly Low 0.5847
Daily Fibonacci 38.2% 0.6028
Daily Fibonacci 61.8% 0.6015
Daily Pivot Point S1 0.6009
Daily Pivot Point S2 0.5973
Daily Pivot Point S3 0.5952
Daily Pivot Point R1 0.6066
Daily Pivot Point R2 0.6087
Daily Pivot Point R3 0.6123

 

 

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures