#NZDUSD @ 0.61130 has stepped above 0.6100 despite a weaken open ahead of US CPI data. (Pivot Orderbook analysis)

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• NZD/USD has stepped above 0.6100 despite a weaken open ahead of US CPI data.
• A mixed performance is expected from the kiwi GDP data this week.
• The DXY will remain on the tenterhooks ahead of the US Inflation data.

The pair currently trades last at 0.61130.

The previous day high was 0.6153 while the previous day low was 0.6046. The daily 38.2% Fib levels comes at 0.6112, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6086, expected to provide support.

The NZD/USD pair is advancing sharply after a shaky open around 0.6080 on Monday. The asset has displayed a vertical upside move, has reclaimed the critical resistance of 0.6100, and is expected to continue its upside journey with significant power. Last week, the kiwi bulls displayed reversal signals after printing a low near the psychological support of 0.6000.

The antipodean found strength after a decline in China’s Consumer Price Index (CPI). The economic data landed at 2.5%, lower than the expectations and the prior release of 2.8% and 2.7% respectively on an annual basis. While the monthly figure is negative by 0.1% against 0.2% of expectations and 0.5% of former release.

A decline in China’s inflation will force the People’s Bank of China (PBOC) to sound dovish and trim the Prime Lending Rate (PLR) further. And, more liquidity flush into the economy will spurt the volumes in economic activities. It is worth noting that New Zealand is a leading trading partner of China and Chinese economic data makes a decent impact on antipodean.

This week, the kiwi zone will display the Gross Domestic Product (GDP) data, which is expected to remain mixed. The economic data is seen higher at 0.8% against a contraction of 0.2%, reported in the prior quarter. However, a contraction of 0.2% is expected vs. an expansion of 1.2% on an annual basis.

Meanwhile, the US dollar index (DXY) is marching towards the critical resistance of 109.00 with much confidence and zeal. The asset is expected to remain on the tenterhooks as investors are awaiting the release of the US CPI. The inflationary pressures are expected to scale down to 8.1% vs. 8.5% recorded earlier on an annual basis.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6109 at the time of writing. Pair opened at 0.6106 and is trading with a change of 0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.617, 50 SMA 0.6212, 100 SMA @ 0.6303 and 200 SMA @ 0.6543.

The previous day high was 0.6153 while the previous day low was 0.6046. The daily 38.2% Fib levels comes at 0.6112, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6086, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.605, 0.5994, 0.5943
• Pivot resistance is noted at 0.6158, 0.6209, 0.6265

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