NZD/USD surges to near 0.6140 after upbeat Business NZ PSI, US Dollar remains stable

NZD/USD continues to move in a positive direction amid a stable US Dollar.
New Zealand Dollar gains ground on the stronger Business NZ PSI.
RBNZ Governor Adrian Orr mentioned that the RBNZ has more to do to anchor inflation expectations to the 2.0% target.

Akhtar Faruqui FXStreet

NZD/USD extends its winning streak that began on Wednesday with edging higher around 0.6140 during the European hours on Monday. The New Zealand Dollar (NZD) moves higher on the back of the upbeat Business NZ Performance of Services Index (PSI) released on Monday.

The Business NZ PSI data is derived from surveys of senior executives at private-sector companies, reflecting an expansion in the service sector with an improved reading of 52.1 in January, as compared to the previous reading of 48.8. On Friday, Business NZ PMI was released and showed an improved reading of 47.3, higher than the previous 43.4 reading.

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr gave a speech titled "The Monetary Policy Remit and 2.0% Inflation" at the New Zealand Economics Forum in Hamilton on Friday. Orr emphasized that the RBNZ has additional tasks to accomplish to anchor inflation expectations to the 2.0% target. He notably declined to discuss rate targets.

Orr emphasized that bringing core inflation within the 1-2% target range is crucial for achieving the overall inflation target. He reaffirmed that the 2.0% inflation midpoint target remains appropriate.

However, market sentiment indicates of no rate adjustments in the upcoming Federal Reserve meetings in March and May. According to the CME FedWatch Tool, there is approximately a 52% probability of a 25 basis points (bps) rate cut in June. On Friday, the US Dollar (USD) failed to sustain its gains, which were initially fueled by better-than-expected Producer Price Index (PPI) data from the United States, consequently leading to an increase in the NZD/USD pair.

The US Producer Price Index (PPI) grew by 0.9% YoY, against the expectations of 0.6% and the 1.0% prior growth. Additionally, there was a MoM improvement of 0.3%, swinging from the previous 0.1% decline. However, the preliminary Michigan Consumer Sentiment Index rose to 79.6 from the previous 79.0, yet it fell short of the anticipated reading of 80.0.

NZD/USD: additional technical levels

Overview
Today last price	0.6143
Today Daily Change	0.0018
Today Daily Change %	0.29
Today daily open	0.6125

Trends
Daily SMA20	0.6104
Daily SMA50	0.6181
Daily SMA100	0.6077
Daily SMA200	0.6078

Levels
Previous Daily High	0.6137
Previous Daily Low	0.6076
Previous Weekly High	0.6153
Previous Weekly Low	0.6049
Previous Monthly High	0.6339
Previous Monthly Low	0.6061
Daily Fibonacci 38.2%	0.6114
Daily Fibonacci 61.8%	0.6099
Daily Pivot Point S1	0.6088
Daily Pivot Point S2	0.6051
Daily Pivot Point S3	0.6027
Daily Pivot Point R1	0.6149
Daily Pivot Point R2	0.6174
Daily Pivot Point R3	0.6211

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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