- NZD/USD eases from a three-week high, snaps two-day uptrend.
- Hawkish Fedspeak, lack of fresh positives from China probe Kiwi bulls.
- Powell’s speech will be crucial ahead of Thursday’s US inflation as NZD/USD is susceptible to Fed wagers.
NZD/USD faded upside momentum after two-day advances, dropping to 0.6370 during early Tuesday’s Asian session. The Kiwi pair rose to the highest level in three weeks as headlines surrounding China, and the US data helped the NZD/USD bulls. However, recent comments from the Fed officials and the cautious mood ahead of this week’s critical data and events seem to challenge the pair buyers.
That said, softer US data concerning the wage growth and ISM Services PMI for December raised speculations that the Federal Reserve (Fed) finally has the upper hand in taming inflation, suggesting a pause to aggressive rate hikes, which in turn propelled NZD/USD prices.
However, hawkish comments from the Fed policymakers challenged the NZD/USD traders. On Monday, Atlanta Federal Reserve bank president Raphael Bostic said it is ''fair to say that the Fed is willing to overshoot.'' On the same line, San Francisco Federal Reserve Bank President Mary Daly stated that they are determined, united, and resolute to bring inflation down.
Additionally, the Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed on Monday that the US consumers' one-year inflation expectation declined to 5% in December from 5.2% prior. Alternatively, the three-year ahead expected inflation remained unchanged at 3% and the five-year ahead expected inflation edged higher to 2.4% from 2.3%.
Amid these plays, the US 10-year Treasury yields dropped five basis points to 3.51% while printing the three-day downtrend, whereas Wall Street closed mixed.
The economic calendar appears light ahead of Thursday’s US Consumer Price Index (CPI) for December. However, today’s Fed Chairman Jerome Powell’s speech will be crucial for the NZD/USD traders to watch for clear directions amid receding hawkish bias for the Fed. Should Powell refrains from conveying hawkish bias, the NZD/USD could refresh the multi-day high.
Despite the recent pullback, the NZD/USD pair’s capacity to stay beyond the 21-DMA support of 0.6330 keeps buyers hopeful.
Additional important levels
|Today last price||0.6369|
|Today Daily Change||0.0015|
|Today Daily Change %||0.24|
|Today daily open||0.6354|
|Previous Daily High||0.6361|
|Previous Daily Low||0.619|
|Previous Weekly High||0.6363|
|Previous Weekly Low||0.619|
|Previous Monthly High||0.6514|
|Previous Monthly Low||0.623|
|Daily Fibonacci 38.2%||0.6296|
|Daily Fibonacci 61.8%||0.6255|
|Daily Pivot Point S1||0.6242|
|Daily Pivot Point S2||0.6131|
|Daily Pivot Point S3||0.6071|
|Daily Pivot Point R1||0.6413|
|Daily Pivot Point R2||0.6473|
|Daily Pivot Point R3||0.6584|
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
AUD/USD continues to juggle below 0.6660 ahead of Australian Retail Sales and CPI data
The AUD/USD pair is demonstrating a back-and-forth action below 0.6660 from Friday’s session. The sideways performance in the Aussie asset is expected to conclude and a power-pack action will be witnessed.
EUR/USD: Euro recovers ground but not re-attracting bulls yet Premium
The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.
Gold: XAU/USD finds support above $1,940; drops more than 1% on Monday Premium
Spot gold dropped on Monday, losing more than $20 as US yields rose, with the 10-year surpassing 3.50%. The yellow metal bottomed at $1,940/oz and then trimmed losses, climbing back above $1,950.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.