- NZD/USD has pushed back above 0.6700 on Monday despite global equities falling on geopolitical tensions.
- The pair is eyeing a break above key resistance in the 0.6730s, which would open the door towards 0.6800.
- NZD bulls are in charge ahead of this week’s key RBNZ meeting, amid chatter about a 50 bps hike.
Despite sharp downside in the global equity space on further escalation of military tensions between Ukrainian and pro-Russia separatist/Russia forces, as well as continued Russia/NATO tensions in the background, NZD/USD has managed to push back above 0.6700 on Monday. As this Wednesday’s RBNZ meeting – where markets participants are split between expecting a 25 bps or 50 bps hike – looms, the pair has gained 0.4% on the session and is one of the better G10 performers on the day.
NZD/USD bulls are intent on testing earlier monthly highs in the 0.6730s although escalating geopolitical angst continues to weigh heavily on other risk assets (like stocks) and could yet spoil the party. This is a key area of support turned resistance so far in 2022 and a break above it would open the door to a run back towards 0.6800 and annual highs near the 0.6900 level. Geopolitics aside, while Wednesday’s RBNZ meeting steals the show this week, New Zealand Q4 Retail Sales figures out on Friday will be of note for the kiwi traders.
There will also be plenty of US data and Fed speak to keep an eye on, the highlights of which include flash February PMIs, the second estimate of Q4 GDP growth and January Core PCE inflation. Markets have dialed down bets on a 50 bps rate hike in March after key FOMC members pushed back against the idea last week. A hot Core PCE reading – which would come on the heels of elevated Consumer and Producer Price Inflation readings for January – would bolster expectations for a rapid series of rate hikes between now and the end of the year.
|Today last price||0.6728|
|Today Daily Change||0.0033|
|Today Daily Change %||0.49|
|Today daily open||0.6695|
|Previous Daily High||0.673|
|Previous Daily Low||0.6685|
|Previous Weekly High||0.673|
|Previous Weekly Low||0.6593|
|Previous Monthly High||0.6891|
|Previous Monthly Low||0.6529|
|Daily Fibonacci 38.2%||0.6713|
|Daily Fibonacci 61.8%||0.6702|
|Daily Pivot Point S1||0.6676|
|Daily Pivot Point S2||0.6658|
|Daily Pivot Point S3||0.663|
|Daily Pivot Point R1||0.6722|
|Daily Pivot Point R2||0.6749|
|Daily Pivot Point R3||0.6768|
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.