NZDUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 1.36% | 75.9 Pips |  |
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| Week to-date | 1.26% | 70.8 Pips | |
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| January | 0.55% | 31.1 Pips |  |
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Upcoming key events (London Time)
Tue 09:45 PM NZD CPI Inflation Rate (12-mth)
What happened lately
Currently, there are no significant economic news releases impacting the economic landscape of New Zealand. However, the currency markets have observed a noticeable movement in the NZDUSD pair. Specifically, on Monday, the New Zealand Dollar (NZD) appreciated against the United States Dollar (USD), with the pair rising by 1.36% to settle at 0.56712. This appreciation in the NZD can be attributed to speculative market anticipations and potential investor optimism surrounding economic data and developments in the global financial ecosystem.
Looking ahead, a noteworthy event on the economic calendar is scheduled for New Zealand. On Tuesday at 9:45 PM, the Consumer Price Index (CPI) inflation rate for the 12-month period will be released. This indicator is critical as it assesses the rate of inflation in New Zealand by measuring the price changes in a basket of goods and services commonly purchased by consumers. A higher-than-expected inflation rate could signal increased consumer spending, potentially bolstering the NZD due to the likelihood of tighter monetary policy by the Reserve Bank of New Zealand (RBNZ) to curb inflationary pressures. Conversely, a lower inflation rate might suggest subdued economic activity, diminishing the case for interest rate hikes and possibly weakening the NZD against the USD.
The upcoming CPI inflation rate announcement carries a high impact potential, and its results could profoundly affect the trajectory of the NZDUSD pair. An uptick in inflation rate above forecasts might lead to appreciation in NZD, encouraging traders to favor the currency amid expectations of increased interest rates by the RBNZ. On the other hand, a reduction in inflation or figures aligning with subdued market expectations may lead to a depreciation of the NZD, as traders might forecast an extended period of accommodative monetary policy. Market participants should remain vigilant ahead of this economic data release, as it holds the capability to induce volatility and influence the direction of the NZDUSD exchange rate.
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What can we expect from NZDUSD today?
NZDUSD on Monday rose 1.36% to 0.56712. Price is above 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 0.57084 with break above could target R2 at 0.57455 or figure level area. While towards the downside, we are looking at daily low of 0.55857 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.56842 may suggest continuation after recent positive movement.
For the week to-date, take note that NZDUSD is bullish as the pair continued to trade higher and is up by 1.26% over the past few days.
Key levels to watch out:
| R3 | 0.58069 |
| R2 | 0.57455 |
| R1 | 0.57084 |
| Daily Pivot | 0.5647 |
| S1 | 0.56099 |
| S2 | 0.55485 |
| S3 | 0.55114 |
#NZDUSD Trending on Twitter
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