Nzdusd rises 0.63% amid mixed economic signals in us and new zealand

NZDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.63%	35.6 Pips
Week to-date	0.52%	29.4 Pips
February	0.72%	40.4 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Monthly Retail Trade (1-mth)

What happened lately

In the United States, the latest economic data indicates several significant changes. The Initial Unemployment Claims decreased to 213K, showing an improvement in the labor market compared to the previous figure of 220K. Concurrently, the Producer Price Index (PPI) showed a marked increase in January, with the overall PPI rising to 0.4%, and the 12-month figure rising to 3.5%. Excluding food and energy, the PPI increased to 0.3% for January, indicating underlying inflationary pressures. Additionally, the U.S. Consumer Price Index (CPI) data revealed a rise in January, with a monthly increase to 0.5%, and core CPI inflation rate (excluding food and energy) also elevated to 0.4%. However, the Monthly Treasury Budget Statement for January showcased a significant deficit, falling to -$129 billion from -$87 billion the previous month.

In New Zealand, the Reserve Bank of New Zealand’s Survey of Inflation Expectations for the first quarter showed a decline from 2.12% in the prior quarter to 2.06%. This slight decrease could imply softer inflation expectations among market participants, possibly influencing the central bank’s monetary stance.

The economic data from both countries will likely influence the NZDUSD currency pair. As seen, the U.S. data points to a strong economy with rising inflation, both in the producer and consumer sectors, coupled with improved labor market conditions. The increase in inflationary measures could lead the Federal Reserve to maintain or even hike interest rates to curb inflation, potentially supporting a stronger USD. Meanwhile, New Zealand’s lower inflation expectation could lead to a dovish stance from the RBNZ, weakening the NZD. Consequently, the combination of these factors may exert downward pressure on the NZDUSD pair, leading to potential USD strength against the NZD. However, market participants should remain attentive to upcoming U.S. retail sales data, as it could influence the currency movements further.

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What can we expect from NZDUSD today?

NZDUSD on Thursday rose 0.63% to 0.56761. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks bullish as the pair ended higher after Thursday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.56961 with break above could target R2 at 0.5716 or figure level area. While towards the downside, we are looking at daily low of 0.56224 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.56792 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:

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