NZD/USD remains steady around 0.6360 on higher-than-expected NZ PMI, Fed Powell in focus

NZD/USD has remained flat despite a higher release of the NZ PMI at 52.9.
The DXY is performing vulnerable after a 75 bps rate hike announcement by the Fed.
Next week, the kiwi bulls will react to the interest rate decision by the PBOC.

Sagar Dua FXStreet

The NZD/USD pair has not displayed any wild or one-sided moves after the release of the Business NZ PMI. Business NZ has reported the PMI at 52.9, higher than the expectations and the prior print of 52.7 and 51.2 respectively.

The kiwi bulls are performing strongly from the last two trading sessions despite the downbeat Gross Domestic Product (GDP) numbers. A country’s GDP data states its overall economic growth and possess significant importance. The GDP has tumbled to 1.2%, significantly lower than the estimates of 3.3% and the prior print of 3.1%on an annual basis. More adverse, the quarterly figures have shifted to negative territory. The quarterly GDP has landed at -0.2%, much lower than the consensus and the former figure of 0.6% and 3% respectively.

Next week, the kiwi dollar will be guided by the interest rate decision from the People Bank of China (PBOC). Officially, the one-year loan prime rate of the PBOC stands at 3.7% while the five-year rate is at 4.6%.

Meanwhile, the US dollar index (DXY) has recorded a two-day losing streak after the Federal Reserve (Fed) announced a rate hike by 75 basis points (bps). A 75 bps rate hike option gained popularity on the release of the four-decade-high US Consumer Price Index (CPI) at 8.6%. A tight labor market and firm growth prospects have supported the Federal Reserve (Fed) to announce an extremely tight policy. In today’s session, investors will keep an eye on the speech from Fed chair Jerome Powell, which will provide more insights of the monetary policy dictated on Wednesday.

NZD/USD

Overview
Today last price	0.6361
Today Daily Change	0.0053
Today Daily Change %	0.84
Today daily open	0.6308

Trends
Daily SMA20	0.6431
Daily SMA50	0.652
Daily SMA100	0.6648
Daily SMA200	0.6791

Levels
Previous Daily High	0.6313
Previous Daily Low	0.6208
Previous Weekly High	0.6538
Previous Weekly Low	0.6348
Previous Monthly High	0.6569
Previous Monthly Low	0.6217
Daily Fibonacci 38.2%	0.6273
Daily Fibonacci 61.8%	0.6248
Daily Pivot Point S1	0.6239
Daily Pivot Point S2	0.617
Daily Pivot Point S3	0.6133
Daily Pivot Point R1	0.6345
Daily Pivot Point R2	0.6382
Daily Pivot Point R3	0.6451

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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