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NZD/USD recovers from Tuesday’s two-year lows under 0.6200 pre-US Retail Sales/Fed announcement

  • NZD/USD has rebounded to close to 0.6250 after hitting its lowest since June 2020 on Tuesday. 
  • Traders are focused on imminent US Retail Sales data and the upcoming Fed policy announcement. 

bout of pre-US Retail Sales data and Fed policy announcement meeting weakness in the US dollar, that seems partially driven by a modest improvement in risk appetite as European equities rebound from Tuesday’s multi-month lows and global yields pare back from highs, is boosting NZD/USD in pre-US open Wednesday trade. The pair was last trading higher by about 0.7% in the 0.6250 region, a little over 50 pips higher versus Tuesday’s lows just under 0.6200, which was the lowest the pair has been since June 2020. 

Amid a lack of major macro updates, traders have their attention fixated on Wednesday’s economic calendar. US Retail Sales figures for May are due at 1230GMT and will be viewed in the context of rising US recession fears. Given that inflation in the US is so bad (as per last week’s inflation figures), bad data is unlikely to be interpreted as good for risk appetite as the Fed doesn’t have the room to be more dovish to support growth. 

That suggests that poor US data risks sending risk assets lower and NZD/USD potentially back towards 0.6200 once again. Speaking of the Fed, the US central bank is expected to lift interest rates by 75 bps to a target range of 1.5-1.75% from 0.75-1.0% in its policy announcement at 1800GMT. There will also be a lot of focus on fresh quarterly economic forecasts and rate guidance via a new dot-plot. Fed Chair Jerome Powell will then appear for his usual post-meeting press conference which will begin at 1830GMT. 

NZD/Usd

Overview
Today last price0.6256
Today Daily Change0.0041
Today Daily Change %0.66
Today daily open0.6215
 
Trends
Daily SMA200.6433
Daily SMA500.6533
Daily SMA1000.6652
Daily SMA2000.6795
 
Levels
Previous Daily High0.6294
Previous Daily Low0.6197
Previous Weekly High0.6538
Previous Weekly Low0.6348
Previous Monthly High0.6569
Previous Monthly Low0.6217
Daily Fibonacci 38.2%0.6234
Daily Fibonacci 61.8%0.6256
Daily Pivot Point S10.6177
Daily Pivot Point S20.6138
Daily Pivot Point S30.608
Daily Pivot Point R10.6274
Daily Pivot Point R20.6332
Daily Pivot Point R30.6371

Author

Joel Frank

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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