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NZD/USD reclaims 0.6000 as US data fuels dovish Fed speculation

  • NZD/USD climbs 0.36%, breaking above the 0.6000 mark, driven by softer US inflation and retail sales data, hinting at a potential pause in Fed rate hikes.
  • The pair's rise is bolstered by strong Chinese industrial and retail figures, enhancing risk appetite and supporting the New Zealand Dollar.
  • Despite a recovering US Dollar Index, the Kiwi benefits from market speculation of an 88 basis point rate cut by the Fed by the end of 2024, with key US and NZ economic data ahead.

The New Zealand Dollar (NZD) climbs 0.36% against the US Dollar (USD), with buyers reclaiming the 0.6000 figure on Wednesday, courtesy of mixed data in the United States (US). The pair traveled from the day’s low of 0.5996 and reached a high of 0.6054 before reversing toward current exchange rates, as the NZD/USD trades at 0.6028.

Kiwi Dollar rises on mixed US economic reports, strong Chinese data

In the last couple of days, the US economic calendar has featured inflation reports from the consumer and producer side, with both readings missing estimates. Elevated prices in the US, begin to cool down, as October CPI came at 3.2% YoY, below forecasts and the prior’s 3.7% expansion, while the Producer Price Index (PPI) on an annual basis, rose by 1.3%, below September’s and expectations of 2.2%, and 1.9% respectively.

The data sparked speculations the Fed could have ended its tightening cycle. Interest rate futures traders linked to federal fund rates have priced in 88 basis points of rate cuts towards the end of  2024, spurring a drop in US Treasury bond yields.

Other data revealed by the Department of Commerce, Retail Sales in the US disappointed analysts, contracted -0.1% MoM in October, less than the -0.3% consensus.

The NZD/USD rises despite the Greenback (USD) recovery, as shown by the US Dollar Index (DXY). The DXY gains 0.23%, up at 104.30, though is trading in the red during the week.

In New Zealand (NZ), the economic docket was absent, but solid Chinese economic data improved risk appetite and underpinned the Kiwi Dollar (NZD). China’s Industrial Production rose 4.6% YoY, above estimates and last month’s readings, while Retail Sales soared 7.6% YoY, exceeding forecasts of 7% and above September’s 5.5%.

Ahead, the US economic calendar would feature unemployment claims, Industrial Production, and Federal Reserve (Fed) speakers. On the NZ front, the Producer Price Index (PPI).

NZD/USD Technical Levels

NZD/USD

Overview
Today last price0.6033
Today Daily Change0.0023
Today Daily Change %0.38
Today daily open0.601
 
Trends
Daily SMA200.5878
Daily SMA500.5913
Daily SMA1000.6003
Daily SMA2000.6102
 
Levels
Previous Daily High0.6014
Previous Daily Low0.5863
Previous Weekly High0.6002
Previous Weekly Low0.5877
Previous Monthly High0.6056
Previous Monthly Low0.5772
Daily Fibonacci 38.2%0.5956
Daily Fibonacci 61.8%0.5921
Daily Pivot Point S10.5911
Daily Pivot Point S20.5811
Daily Pivot Point S30.576
Daily Pivot Point R10.6062
Daily Pivot Point R20.6113
Daily Pivot Point R30.6213

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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