NZDUSD @ 0.64286 – Support/Resistance analysis: rises towards the 100-DMA on US inflation showing signs of softening

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NZDUSD @ 0.64286 – Support/Resistance analysis: rises towards the 100-DMA on US inflation showing signs of softening

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• The NZD/USD advances for the second straight day, up in the week by 3.03%.
• The US PPI for July rose by 9.8% YoY, less than estimates and last month’s reading.
• US Initial Jobless Claims jumped for two consecutive weeks, hinting the labor market is moderating.

The pair currently trades last at 0.64286.

The previous day high was 0.6436 while the previous day low was 0.6275. The daily 38.2% Fib levels comes at 0.6374, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6336, expected to provide support.

The NZD/USD climbs above the 100-day EMA around 0.6439, courtesy of investors’ positive sentiment, as reports emerging from the US showed that prices might be peaking. Still, even though Fed speakers cheered and welcomed the information, they held to their hawkish stance. Given the abovementioned scenario, the greenback remains soft during the day.

At the time of writing, the NZD/USD is trading at 0.6444, after hitting a daily low below the 0.6400 figure, gaining 0.68%.

Sentiment remains positive, with US equities registering gains between 0.14% and almost 1%. The US Producer Price Index for July slowed its pace to 9.8% YoY, vs. estimations of 10.4%. Additionally, the so-called core PPI, which strips food and energy, rose by 7.6% YoY, in line with measures.

Meanwhile, US Initial Jobless Claims for the last week, which ended on August 6, increased by 262K, less than estimations, but began to show signs of moderation. Worth noticing that claims jumped for the second consecutive week, further confirming the latter.

The US Dollar Index, a gauge of the buck’s value against a basket of six rivals, edges down 0.12% at 105.055, a tailwind for the NZD/USD.

Data-wise, the New Zealand calendar reported that Visitor Arrivals rose by 83.5%, crushing expectations of 15%.

The New Zealand economic docket will feature Business PMI for July, estimated at 49.2, alongside Food Inflation, estimated at 6.5%. On the US front, the US calendar will reveal the University of Michigan Consumer Sentiment, estimated at 52.5, and Consumer Inflation expectations for a 5-year horizon, forecasted at 2.8%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6431 at the time of writing. Pair opened at 0.6403 and is trading with a change of 0.44 % .

The pair is trading above its 20 Daily moving average @ 0.6254, above its 50 Daily moving average @ 0.6276 , below its 100 Daily moving average @ 0.6453 and below its 200 Daily moving average @ 0.6629

The previous day high was 0.6436 while the previous day low was 0.6275. The daily 38.2% Fib levels comes at 0.6374, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6336, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6307, 0.6211, 0.6146
• Pivot resistance is noted at 0.6467, 0.6532, 0.6628

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