#NZDUSD @ 0.60677 has turned sideways around 0.6060 posts a soft recovery ahead of US Durable Goods Orders. (Pivot Orderbook analysis)
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- NZD/USD has turned sideways around 0.6060 posts a soft recovery ahead of US Durable Goods Orders.
- Fed policymakers are anticipated to capitalize on tight credit conditions to weigh pressure on inflation rather than hiking interest rates further.
- RBNZ Silk advised holding rates ahead and remaining data-specific.
The pair currently trades last at 0.60677.
The previous day high was 0.6115 while the previous day low was 0.6043. The daily 38.2% Fib levels comes at 0.6071, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6087, expected to provide resistance.
The NZD/USD pair is displaying a back-and-forth action after a soft recovery around 0.6070 in the early London session. The Kiwi asset is expected to extend recovery as the US Dollar Index (DXY) has shifted into the bearish trajectory amid bets favoring a pause in the rate-hike spell by the Federal Reserve (Fed).
S&P500 futures have trimmed some losses added in Asia, portraying a minor recovery in the risk appetite of the market participants. A decline in the US Dollar Index (DXY) has improved the appeal for US equities. However, the overall market mood is expected to remain cautious as the $31.4 trillion US borrowing cap limit has not increased yet.
The USD index has come under pressure as the Federal Reserve (Fed) policymakers are anticipated to capitalize on tight credit conditions to weigh pressure on inflation rather than hiking interest rates further.
For further guidance, US Durable Goods Orders data will be keenly watched. April’s Durable Goods Orders are seen contracting by 1.0% vs. an expansion by 3.2%. A contraction in the economic data indicates poor demand, which would have a ripple effect on US Consumer Price Index (CPI).
Investors should note that the US economy is facing issues of persistence in core inflation more than the headline price index. A contraction in durable goods demand would release some heat from core inflation and would be a more relieving factor for the Fed.
On the New Zealand Dollar front, Reserve Bank of New Zealand´s Assistant Governor Karen Silk noted that Cyclone Gabrielle was less inflationary than first feared and stated that rates need to stay on hold for an extended period. She said that they must be watchful of over-tightening policy and that the RBNZ can hold now and sees what develops.
Investors should note that RBNZ Governor Adrian Orr raised its Official Cash Rate (OCR) by 25 basis points (bps) to 5.5% this week.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.607 at the time of writing. Pair opened at 0.6063 and is trading with a change of 0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6070 |
| 1 | Today Daily Change | 0.0007 |
| 2 | Today Daily Change % | 0.1200 |
| 3 | Today daily open | 0.6063 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6233, 50 SMA 0.6226, 100 SMA @ 0.627 and 200 SMA @ 0.6154.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6233 |
| 1 | Daily SMA50 | 0.6226 |
| 2 | Daily SMA100 | 0.6270 |
| 3 | Daily SMA200 | 0.6154 |
The previous day high was 0.6115 while the previous day low was 0.6043. The daily 38.2% Fib levels comes at 0.6071, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6087, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6032, 0.6002, 0.596
- Pivot resistance is noted at 0.6104, 0.6146, 0.6176
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6115 |
| Previous Daily Low | 0.6043 |
| Previous Weekly High | 0.6306 |
| Previous Weekly Low | 0.6117 |
| Previous Monthly High | 0.6389 |
| Previous Monthly Low | 0.6111 |
| Daily Fibonacci 38.2% | 0.6071 |
| Daily Fibonacci 61.8% | 0.6087 |
| Daily Pivot Point S1 | 0.6032 |
| Daily Pivot Point S2 | 0.6002 |
| Daily Pivot Point S3 | 0.5960 |
| Daily Pivot Point R1 | 0.6104 |
| Daily Pivot Point R2 | 0.6146 |
| Daily Pivot Point R3 | 0.6176 |
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