NZDUSD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.03% | 1.6 Pips |  |
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| Week to-date | 1.33% | 74.3 Pips | |
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| January | 0.39% | 21.9 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the fourth quarter, New Zealand’s Consumer Price Index (CPI) inflation rate on an annual basis remained steady at 2.2%, showing no change from the third quarter figures. However, the quarterly CPI inflation rate observed a minor decline, dropping from 0.6% in the third quarter to 0.5% in the fourth quarter. This data indicates that while the overall price level steadied on a yearly basis, there was a slight slowdown in the inflation momentum quarter-on-quarter. These figures suggest that the inflationary pressures in New Zealand’s economy are somewhat contained at the moment, potentially reflecting balanced economic conditions or the impact of previous monetary measures by the central bank.
Regarding the NZDUSD currency pair, it showed a slight increase of 0.03% on Wednesday, rising to 0.56616. The pair is noted to be in a phase of consolidation, implying limited price movement and absence of a strong directional trend. With no major economic events scheduled for the day, the currency pair’s movement was likely more influenced by broader market dynamics and investor sentiment rather than fundamental shifts in economic indicators.
The unchanged and marginally lower CPI figures are unlikely to prompt immediate action from New Zealand’s monetary authorities, as the economy does not appear to be facing severe inflationary or deflationary pressures. However, should the trend of stable annual inflation and slightly lower quarterly inflation persist, it might deter aggressive monetary tightening or prompt cautious accommodation to sustain economic momentum. For the NZDUSD, this scenario implies potential stability without significant depreciation or appreciation pressures arising from monetary policy shifts in the short term, assuming external conditions, such as US economic policies or global market risks, remain neutral.
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What can we expect from NZDUSD today?
NZDUSD on Wednesday rose 0.03% to 0.56616. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.56441 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.56878 or trades above daily pivot 0.56659. Break above could target R1 at 0.56835. While to the downside, we are looking at 0.56441 (S1) and daily low of 0.56484 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.56878 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 | 0.57229 |
| R2 | 0.57053 |
| R1 | 0.56835 |
| Daily Pivot | 0.56659 |
| S1 | 0.56441 |
| S2 | 0.56265 |
| S3 | 0.56047 |
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