NZD/USD refreshes monthly low near 0.6150 amid risk-off mood, US Retail Sales in focus

NZD/USD has plunged to near 0.6150 on downbeat market sentiment.
Investors project that the US Retail Sales grew by 0.4% vs. 0.3% increment in November.
RBNZ Conway is expected to push back market expectations of early rate cuts.

Sagar Dua FXStreet

The NZD/USD pair has printed a fresh monthly low near 0.6150 in the early New York session. The Kiwi asset has faced a sharp sell-off as investors have rushed towards safe-haven assets amid deepening crises in the Middle East region and uncertainty about when the Federal Reserve (Fed) will start its rate-cut cycle.

The S&P500 is expected to open on a bearish note, considering negative cues from overnight futures. The market mood is quite bearish as Iran-backed-Houthi rebels have threatened that they will strike back for launching airstrikes by the US military in Yemen.

Meanwhile, the US Dollar Index (DXY) looks firm near fresh weekly high around 103.20 as market participants are reviewing strong bets supporting a rate cut by the Fed in March. Investors have turned cautious about the Fed reducing interest rates from March as inflation data for December remained stubborn than projected.

Apart from that, Atlanta Fed President Raphael Bostic said it is too early to discuss rate cuts as the progress in inflation returning towards the 2% target has slowed.

Investors await the US Retail Sales data for December, which will be published on Wednesday. The economic data is expected to grow by 0.4% against 0.3% increase in November.

On the New Zealand Dollar front, investors await the speech from Reserve Bank of New Zealand (RBNZ) policymaker Paul Conway in which he is expected to push back market expectations supporting a rate cut sooner. The inflation in the New Zealand economy is significantly higher than what required by RBNZ policymakers, which would allow them to maintain a restrictive stance.

NZD/USD

Overview
Today last price	0.6158
Today Daily Change	-0.0036
Today Daily Change %	-0.58
Today daily open	0.6194

Trends
Daily SMA20	0.627
Daily SMA50	0.6154
Daily SMA100	0.6035
Daily SMA200	0.6092

Levels
Previous Daily High	0.6249
Previous Daily Low	0.6183
Previous Weekly High	0.6279
Previous Weekly Low	0.6196
Previous Monthly High	0.641
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6208
Daily Fibonacci 61.8%	0.6224
Daily Pivot Point S1	0.6168
Daily Pivot Point S2	0.6143
Daily Pivot Point S3	0.6102
Daily Pivot Point R1	0.6234
Daily Pivot Point R2	0.6275
Daily Pivot Point R3	0.63

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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