NZD/USD remains capped under the 0.6200 barrier, investors await US CPI data

NZD/USD weakens near 0.6172 despite the softer USD in Monday’s Asian session.
The mixed US February labour market data and dovish remarks from Fed’s Powell triggered the expectation for rate cuts in June.
The upbeat China’s CPI inflation data lifts the Kiwi against the USD.
The highlight of this week will be the US February CPI, due on Tuesday.

Lallalit Srijandorn FXStreet

The NZD/USD pair remains capped under the 0.6200 barrier during the Asian session on Monday. The downtick of the pair might be limited as the US Dollar (USD) is likely to remain on its back foot after the dovish comments from Federal Reserve (Fed) Chair Jerome Powell and the mixed jobs data last week. At press time, NZD/USD is trading at 0.6172, down 0.03% on the day.

Last week, Fed’s Powell suggested that the path for easing policy may not be far off as the US central bank isn’t far from getting the evidence needed to be confident inflation is returning sustainably to the 2% target. The dovish remarks from Powell triggered the expectation for rate cuts in June, with the market now pricing in 100 basis points (bps) of total easing this year. This, in turn, exerts some selling pressure on the Greenback and acts as a tailwind for the NZD/USD pair.

On the other hand, the signal of an upward trend in China's main gauge of inflation provides some support to the China-proxy New Zealand Dollar (NZD). The Chinese Consumer Price Index (CPI) rose by 0.7% YoY in February from a 0.8% fall in January, stronger than the estimation of a 0.3% rise.

The US February CPI will be due on Tuesday. The headline CPI figure is expected to remain steady at 3.1% YoY, while the Core CPI is estimated to ease to 3.7% YoY. Additionally, US Retail Sales will be reported on Thursday, which is projected to improve to 0.7%. The better-than-expected data might lift the USD and cap the upside of the NZD/USD pair.

NZD/USD

Overview
Today last price	0.6172
Today Daily Change	-0.0003
Today Daily Change %	-0.05
Today daily open	0.6175

Trends
Daily SMA20	0.6135
Daily SMA50	0.6148
Daily SMA100	0.6109
Daily SMA200	0.6079

Levels
Previous Daily High	0.6218
Previous Daily Low	0.6161
Previous Weekly High	0.6218
Previous Weekly Low	0.6069
Previous Monthly High	0.6219
Previous Monthly Low	0.6037
Daily Fibonacci 38.2%	0.6196
Daily Fibonacci 61.8%	0.6183
Daily Pivot Point S1	0.6151
Daily Pivot Point S2	0.6128
Daily Pivot Point S3	0.6095
Daily Pivot Point R1	0.6208
Daily Pivot Point R2	0.6241
Daily Pivot Point R3	0.6265

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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