NZD/USD stable in 0.6725 area after Thursday/Friday’s APac session drop, next week’s Fed meeting & NZ CPI data eyed


  • After dropping sharply during Thursday’s US and Friday’s APac sessions, NZD/USD has stabilised in the 0.6725 area.
  • Next week’s Fed meeting and New Zealand CPI data will be the key events to watch.
  • NZD/USD will be eyeing a test of the 0.6700 level.

After dropping sharply late on Thursday/during early Friday Asia Pacific trade after slipping below an uptrend that has supported the price action going all the way back to mid-December, NZD/USD has stabilised in the 0.6725 area. The pair broke below the uptrend during Thursday’s US session as stocks on Wall Street declined, which at the time weighed broadly on risk assets such as NZD. Though US (and global) equities have continued to decline on Friday, a sharp drop in US bond yields (related to safe-haven demand) has dampened the safe-haven appeal of the US dollar, shielding NZD/USD from further losses.

Next week is a big one for NZD/USD traders. During Wednesday’s US session, the Fed will release their latest policy decision, where they are expected to give the green light for multiple rate hikes in 2022 starting as soon as March and may give more details on quantitative tightening. Shortly after and at the start of Thursday’s Asia Pacific session, Q4 Consumer Price Inflation data will be released out of New Zealand. A hotter than expected outturn could result in a strengthening of the market’s conviction that the RBNZ is set to continue the rate hiking cycle it began last year and remain well ahead of the Fed regarding the removal of monetary accommodation.

Whilst that might be enough to give NZD a temporary lift, the currency will as usual trade mostly as a function of USD flows and risk appetite. It's been a bumpy start to the Q4 US earnings season – Netflix, the first major US tech company to report, is down over 20% on the day after Thursday’s earnings release – and this may continue to weigh on NZD. Generalised fears about Fed hawkishness, as well as a potential escalation in geopolitical tensions in Eastern Europe, might also continue to weigh on risk appetite and the kiwi. It seems very likely that NZD/USD, which is down just over 1.0% on the week from above 0.6700, will test and perhaps even break below 0.6700 in the coming week.  

NZD/Usd

Overview
Today last price 0.6726
Today Daily Change -0.0028
Today Daily Change % -0.41
Today daily open 0.6754
 
Trends
Daily SMA20 0.6801
Daily SMA50 0.683
Daily SMA100 0.6948
Daily SMA200 0.7016
 
Levels
Previous Daily High 0.6806
Previous Daily Low 0.6752
Previous Weekly High 0.6891
Previous Weekly Low 0.6736
Previous Monthly High 0.6891
Previous Monthly Low 0.6701
Daily Fibonacci 38.2% 0.6773
Daily Fibonacci 61.8% 0.6785
Daily Pivot Point S1 0.6735
Daily Pivot Point S2 0.6716
Daily Pivot Point S3 0.6681
Daily Pivot Point R1 0.6789
Daily Pivot Point R2 0.6825
Daily Pivot Point R3 0.6843

 

 

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

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD has lost its traction in the American session and retreated to the 1.0550 area. In the absence of high-tier macroeconomic data releases, the dollar is staging a rebound with the US Dollar Index rising above 103.00 and forcing the pair to edge lower.

EUR/USD News

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD has extended its sideways grind below 1.2500 into the second half of the day on Friday with the dollar staying resilient against its rivals. Nevertheless, the pair remains on track to snap a four-week losing streak.

GBP/USD News

Gold loses traction, drops below $1,840

Gold loses traction, drops below $1,840

Gold came under modest bearish pressure in the American session on Friday and dropped below $1,840. The benchmark 10-year US Treasury bond yield stays quiet above 2.8%, helping XAU/USD limit its losses ahead of the weekend.

Gold News

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

A brief technical and on-chain analysis on Bitcoin price. Here, analysts evaluate where BTC could be heading next. Does the possibility for a cat bounce make sense?

Read more

PANW shows bullish reversal chart pattern after earnings beat

PANW shows bullish reversal chart pattern after earnings beat

PANW stock benefits from continued strong revenue growth. Palo Alto Networks now nearly services half of the Global 2000. PANW stock is showing a bullish reversal pattern on its daily chart.

Read more

Forex MAJORS

Cryptocurrencies

Signatures