NZD/USD surrenders intraday gains amid softer risk tone, modest USD bounce ahead of US PMIs

  • NZD/USD attracts some intraday sellers amid a modest bounce from a multi-month low.
  • Recession fears take a toll on the risk sentiment and benefit the safe-haven Greenback.
  • Bets for smaller Fed rate hikes drag the US bond yields lower and cap gains for the USD.
  • Traders eye US PMIs for some impetus ahead of NZ quarterly CPI report on Wednesday.

The NZD/USD pair continues with its struggle to find acceptance above the 0.6500 psychological mark and retreats over 50 pips from a multi-day high touched earlier this Tuesday. Spot prices return to the lower end of the daily range, around the 0.6480-0.6475 region, heading into the North American session, though any meaningful decline seems elusive.

Worries about a deeper global economic downturn keep a lid on any optimism in the markets, which is evident from a fresh leg down in the equity markets. This, in turn, assists the safe-haven US Dollar to stage a modest recovery from a nine-month low and drives some flows away from the risk-sensitive Kiwi. That said, the prospects for a less aggressive policy tightening by the Fed might cap the upside for the Greenback and lend support to the NZD/USD pair.

Investors seem convinced that the US central bank will soften its hawkish stance amid signs of easing inflationary pressures. In fact, the markets have been pricing in a smaller 25 bps rate hike move at the end of the upcoming policy meeting next week. This, in turn, exerts some downward pressure on the US Treasury bond yields and might continue to weigh on the buck. Traders also seem reluctant to place aggressive bets ahead of this week's important macroeconomic data.

The quarterly consumer inflation report from New Zealand is scheduled for release during the early Asian session on Wednesday. This will be followed by the Advance Q4 GDP print and the Core PCE Price Index from the US on Thursday and Friday, respectively. The key focus, however, will remain on the highly-anticipated FOMC monetary policy decision. This will play a key role in driving the USD in the near term and help determine the near-term trajectory for the NZD/USD pair.

In the meantime, traders on Tuesday will take cues from the US economic docket, featuring the flash PMI prints and the Richmond Manufacturing Index. Apart from this, the US bond yields and the broader risk sentiment, will influence the USD price dynamics and provide some meaningful impetus to the NZD/USD pair. Nevertheless, the fundamental backdrop still seems tilted in favour of bullish traders, suggesting that any meaningful pullback might be seen as a buying opportunity.

Technical levels to watch


Today last price 0.6478
Today Daily Change -0.0009
Today Daily Change % -0.14
Today daily open 0.6487
Daily SMA20 0.636
Daily SMA50 0.6318
Daily SMA100 0.6068
Daily SMA200 0.6199
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



Share: Feed news

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.

Recommended content

Recommended content

Editors’ Picks

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.


GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.


Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more