NZDUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.5% | 28.9 Pips |  |
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| Week to-date | 0.48% | 28.1 Pips |  |
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| December | -0.55% | -32.6 Pips |  |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
What happened lately
On Monday, the currency pair NZDUSD experienced a rise of 0.5%, reaching a level of 0.58632. This movement in the forex market occurred despite the absence of any major economic news that might have traditionally prompted significant exchange rate adjustments. This suggests that factors not immediately present in the economic calendar may have contributed to the currency’s upward trajectory.
Attention is now directed towards a high-impact upcoming event from the United States. Scheduled for Wednesday at 01:30 PM, the release of the US Consumer Price Index (CPI) Inflation Rate reflecting a 12-month perspective is anticipated to capture the market’s focus. Inflation data is pivotal as it affects monetary policy decisions made by central banks, particularly the Federal Reserve. The report could potentially offer insights into inflationary pressures within the world’s largest economy and may influence expectations regarding future interest rate adjustments.
In the context of the NZDUSD pair, this rise on Monday, as reported by Economic Recap, could be influenced by market participants’ expectations in advance of the significant US data release. A higher-than-anticipated CPI might bolster the USD due to speculation surrounding potential rate hikes by the Fed, while a lower figure might weaken it, providing further tailwinds for the NZD. Consequently, traders and investors might adopt a cautious stance, closely monitoring US inflation figures and their implications on monetary policy, which in turn could influence the NZDUSD’s behavior moving forward. As there are no imminent economic data releases from New Zealand, the upcoming US inflation report is poised to have a strong influence on the pair’s trajectory in the upcoming sessions.
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What can we expect from NZDUSD today?
NZDUSD on Monday rose 0.5% to 0.58632. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks bullish as the pair ended higher after Monday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.58995 with break above could target R2 at 0.59358 or figure level area. While towards the downside, we are looking at daily low of 0.58039 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.58880 may suggest continuation after recent positive movement.
For the week to-date, take note that NZDUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.59836 |
| R2 | 0.59358 |
| R1 | 0.58995 |
| Daily Pivot | 0.58517 |
| S1 | 0.58154 |
| S2 | 0.57676 |
| S3 | 0.57313 |
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