Nzdusd remains stable amid US economic shifts in inflation and job market trends

NZDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0%	-0.2 Pips
Week to-date	0.09%	5.2 Pips
March	2.06%	115.3 Pips

Upcoming key events (London Time)

Thu 12:30 PM USD PPI excluding Food and Energy sectors (12-mth)
Fri 02:00 PM USD Index of Consumer Sentiment

What happened lately

In the United States, there have been notable developments in both fiscal and inflation domains for February. The Monthly Treasury Budget Statement shows a significant drop, with a deficit widening to -$307 billion compared to -$129 billion in January, indicating increased government spending or reduced revenues. Additionally, inflation has shown signs of moderation. The CPI Inflation rate on a 12-month basis decreased to 2.8% from January’s 3%, while the monthly rate reduced to 0.2% from 0.5%. Excluding food and energy, the CPI inflation rate also reduced from 3.3% to 3.1% on a 12-month basis and from 0.4% to 0.2% monthly. This suggests a potential easing in core inflationary pressures. Moreover, the U.S. job market appears robust, with January’s JOLTS report indicating an increase in job openings to 7.74 million from December’s revised figure of 7.508 million.

The recent economic data from the United States, particularly the decrease in the CPI inflation rate, can have significant implications for NZDUSD. As inflation appears to be moderating, this could dampen the Federal Reserve’s urgency to raise interest rates aggressively in the near term, potentially leading to a weakening of the USD. On the other hand, the rise in job openings reflects economic resilience which might support the USD to some extent. Overall, the NZDUSD pair is currently in consolidation, but any dovish signals from upcoming U.S. economic indicators, such as the Producer Price Index or consumer sentiment, could potentially benefit the NZD against the USD. As these factors develop, traders will be closely monitoring for shifts in trading sentiment that might break the current consolidation pattern. For now, the pair remains stable around 0.57120, waiting for clearer directional cues from economic updates.

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What can we expect from NZDUSD today?

NZDUSD on Wednesday dropped 0% to 0.57120. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.57093 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.57170 or trades above daily pivot 0.57131. Break above could target R1 at 0.57159. While to the downside, we are looking at 0.57093 (S1) and daily low of 0.57104 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.57104 would indicate selling pressure.

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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