- NZD/USD pops 25 bps on upbeat New Zealand Q4 Consumer Price Index.
- NZ CPI came in 7.2% YoY, 1.2% QoQ versus 7.1% and 1.3% expected respectively.
- US PMIs failed to impress US Dollar for long as Composite PMI marked seven-month downtrend.
NZD/USD begins Wednesday’s trading on a firmer footing on upbeat New Zealand (NZ) inflation data, initially poping up to 0.6525 before retreating to 0.6500 by the press time. Adding strength to the Kiwi pair’s run-up could be the US Dollar’s failure to keep the late Tuesday’s gains amid dovish bias for the Federal Reserve’s next move.
NZ Consumer Price Index (CPI) for the fourth quarter (Q4) rose past 7.1% YoY market forecast to reprint the 7.2% figures while the QoQ data suggests a 1.4% number against 1.3% expected and 2.2% prior. It’s worth noting that the Reserve Bank of New Zealand (RBNZ) anticipated 7.5% yearly inflation in its November meeting.
On the other hand, preliminary readings of the US S&P Global Manufacturing PMI for January rose past 46.2 market forecast and 46.1 market expectations with 46.8 figure while the Services PMI followed the suit with the 46.6 figure for the said month, versus 44.5 forecast and 44.7 prior. That said, the S&P Global Composite PMI for January increased to 46.6 from 45.0 prior and the 44.7 consensus, marking the seventh consecutive read below 50.
Following the US data, the US Dollar Index (DXY) managed rise for a brief time before closing in the red. The reason could be linked to the comments from Chief Business Economist at S&P Global Chris Williamson who said, “The US economy has started 2023 on a disappointingly soft note, with business activity contracting sharply again in January."
That said, receding odds of the Federal Reserve's (Fed) hawkish play in the next week’s monetary policy meeting, mainly due to the recently downbeat US data seemed to have weighed on the US Treasury bond yields, as well as the US Dollar. It should be noted that the mixed earnings report and sentiment portrayed Wall Street’s mixed close on Tuesday.
Having witnessed the initial reaction to New Zealand inflation data, which is not much alarming, the NZD/USD pair traders may wait for Australia’s CPI and NZ Credit Card Spending data for December for immediate directions.
A six-week-old ascending resistance line near 0.6535 restricts immediate NZD/USD upside amid nearly overbought RSI conditions.
Additoinal important levels
|Today last price||0.6506|
|Today Daily Change||0.0019|
|Today Daily Change %||0.29%|
|Today daily open||0.6487|
|Previous Daily High||0.65|
|Previous Daily Low||0.6437|
|Previous Weekly High||0.6531|
|Previous Weekly Low||0.6361|
|Previous Monthly High||0.6514|
|Previous Monthly Low||0.623|
|Daily Fibonacci 38.2%||0.6476|
|Daily Fibonacci 61.8%||0.6461|
|Daily Pivot Point S1||0.6449|
|Daily Pivot Point S2||0.6412|
|Daily Pivot Point S3||0.6386|
|Daily Pivot Point R1||0.6512|
|Daily Pivot Point R2||0.6538|
|Daily Pivot Point R3||0.6575|
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.