NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%


  • NZD/USD has declined to near 0.6240 on lower RBNZ inflation expectations.
  • The RBNZ inflation expectations have declined to 3.07% vs. 3.29% reported earlier.
  • This week, the US Inflation data holds significant importance.

The NZD/USD pair has faced selling pressure while attempting a break above the immediate hurdle of 0.6260. The asset has witnessed offers after the Reserve Bank of New Zealand (RBNZ) reported the inflation expectations at 3.07%, lower than the prior release of 3.29%. It could be a sign of exhaustion in the price pressures but more warrants for the claim are still desired.

For now, price pressures are already soaring in the NZ economy and have not displayed any exhaustion sign yet. As per the June print, an inflation rate of 7.3% is sufficient to create headwinds for the households. To combat the same the RBNZ is continuously accelerating its policy tightening measures. RBNZ Adrian Orr has already elevated its Official Cash Rate (OCR) by 2.50%.

On the US dollar front, the US dollar index (DXY) has surrendered its entire intraday gains and is auctioning near the day’s open at 106.60. The DXY has faced selling pressure while attempting a break above the critical resistance of 106.80. This week, investors are focused on the release of the US Consumer Price Index (CPI), which will release on Wednesday.

The annual inflation figure is likely to remain lower at 8.7% against the prior release of 9.1%. Oil prices have remained in a negative trajectory in July, which might be the critical factor for a decent slippage in the price rise index. While the US CPI that doesn’t include volatile food and oil prices may improve to 6.1% from the prior print of 5.9%.

NZD/USD

Overview
Today last price 0.6234
Today Daily Change -0.0004
Today Daily Change % -0.06
Today daily open 0.6238
 
Trends
Daily SMA20 0.6223
Daily SMA50 0.6287
Daily SMA100 0.647
Daily SMA200 0.6642
 
Levels
Previous Daily High 0.6308
Previous Daily Low 0.6212
Previous Weekly High 0.6353
Previous Weekly Low 0.6212
Previous Monthly High 0.633
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6249
Daily Fibonacci 61.8% 0.6271
Daily Pivot Point S1 0.6197
Daily Pivot Point S2 0.6157
Daily Pivot Point S3 0.6101
Daily Pivot Point R1 0.6293
Daily Pivot Point R2 0.6349
Daily Pivot Point R3 0.6389

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

Disappointing Australian data and a deteriorated market mood weighed on AUD/USD, quickly approaching the 2022 low at 0.6362. RBA’s Financial Stability report coming up next.

AUD/USD News

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

The American dollar maintains a strong upward momentum amid renewed inflation and recession concerns. EUR/USD further retreated after failing to regain parity mid-week.

EUR/USD News

Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

US September NFP Preview: Analyzing gold's reaction to NFP surprises Premium

US September NFP Preview: Analyzing gold's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.

Read more

Forex MAJORS

Cryptocurrencies

Signatures