NZD/USD remains range-bound above the 0.6100 mark, eyes on RBNZ Inflation Expectations and US CPI data


Share:
  • NZD/USD clings to the range-bound theme near 0.6130 on the consolidation of USD.
  • Investors trim bets on Fed rate cuts this year, with just 110 basis points (bps) of cuts priced for 2024.
  • RBNZ’s Orr emphasized the need to maintain a restrictive monetary policy due to ongoing inflation challenges.
  • Traders await the RBNZ inflation expectations data, US CPI data on Tuesday.

The NZD/USD pair sticks to a range-bound trade above the 0.6100 mark during the early Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of the Reserve Bank of New Zealand Inflation Expectations and US Consumer Price Index (CPI) data tonight. The pair currently trades around 0.6130, losing 0.02% on the day.

The robust US economic data might convince the Federal Reserve (Fed) to delay rate cuts. Financial markets have continued to lower expectations for Fed rate cuts this year, with just 110 basis points (bps) of cuts priced for 2024, down from 175 bps projected in early January. Several Fed officials suggested that they want more time to observe whether inflation continues to decline. Minneapolis Fed President Neel Kashkari and Boston Fed President Susan Collins said that the FOMC needs further economic data before lowering interest rates.

The US CPI report will be the highlight on Tuesday. The headline inflation is expected to ease from 3.4% to 2.9% YoY, and the core figure is estimated to drop from 3.9% to 3.7% YoY.

On the Kiwi front, RBNZ governor Adrian Orr said on Monday that the inflation battle was still not over and emphasized broad financial pressure for retaining a “restrictive monetary policy” stance. He further stated that the current inflation rate of 4.7% was still too high and that the board's target is to lower it to around 2%. The RBNZ inflation expectations data will be a closely watched event. If the data supports the case for a rate hike, it might provide some support to the New Zealand Dollar (NZD).

Looking ahead, market players will keep an eye on the RBNZ inflation expectations data ahead of the US CPI inflation data, due later on Tuesday. Later this week, the US Retail Sales will be released on Thursday, and RBNZ’s Orr is set to speak on Friday.

 

NZD/USD

Overview
Today last price 0.613
Today Daily Change -0.0021
Today Daily Change % -0.34
Today daily open 0.6151
 
Trends
Daily SMA20 0.6112
Daily SMA50 0.6185
Daily SMA100 0.607
Daily SMA200 0.6083
 
Levels
Previous Daily High 0.6159
Previous Daily Low 0.6091
Previous Weekly High 0.6159
Previous Weekly Low 0.6037
Previous Monthly High 0.6339
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6133
Daily Fibonacci 61.8% 0.6117
Daily Pivot Point S1 0.6108
Daily Pivot Point S2 0.6066
Daily Pivot Point S3 0.6041
Daily Pivot Point R1 0.6176
Daily Pivot Point R2 0.6201
Daily Pivot Point R3 0.6244

 

 

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

AUD/USD aims higher amid upbeat mood, mixed US data

AUD/USD aims higher amid upbeat mood, mixed US data

The Aussie Dollar registers minuscule gains against the US Dollar as Friday’s Asia session begins. The pair remains capped on the upside despite hitting a new month high at 0.6595, as a key technical resistance level that acted like a magnet drove the exchange rate toward the 0.6550s area.

AUD/USD News

EUR/USD early Thursday rally stalls out and slumps back to 1.0800 region after EU & US PMIs mix

EUR/USD early Thursday rally stalls out and slumps back to 1.0800 region after EU & US PMIs mix

EUR/USD broke higher on Thursday, testing into its highest bids since the start of February before falling back into the 1.0800 region after European and US Purchasing Managers Index (PMI) figures softened or came in mixed on forecasts.

EUR/USD News

Gold slides on rising US yields as data portrays solid economy, delaying Fed rate cuts

Gold slides on rising US yields as data portrays solid economy, delaying Fed rate cuts

Gold price prints modest losses on Thursday after economic data from the United States portrays the US economy as solid based on strong employment figures. The XAU/USD trades within the $2,020-$2,024 area, down by 0.06%.

Gold News

Bitcoin price breakdown possible as European Central Bank says BTC fair value is still zero

Bitcoin price breakdown possible as European Central Bank says BTC fair value is still zero

Bitcoin price’s horizontal consolidation continues to extend, but the support level is wearing thin as the days go by. As the current state of uncertainty continues, it is imperative to remember that markets tend not to wait so long.

Read more

Big tech rises on a promising AI future

Big tech rises on a promising AI future

The S&P 500 surged to an all-time high on Thursday following Nvidia's much stronger-than-expected quarterly results, which buoyed the broader tech sector. Nvidia's stock soared more than 14.5% to reach an all-time high after the company reported a remarkable 265% year-over-year increase in total revenue.

Read more

Forex MAJORS

Cryptocurrencies

Signatures