#NZDUSD @ 0.59982 bears take the bird down into a hard landing on the 0.60 level. (Pivot Orderbook analysis)

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• NZD/USD bears take the bird down into a hard landing on the 0.60 level.
• The bird is testing below the level with a low of 0.5986 so far, the lowest since 2020.

The pair currently trades last at 0.59982.

The previous day high was 0.6159 while the previous day low was 0.6084. The daily 38.2% Fib levels comes at 0.613, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6112, expected to provide resistance.

NZD/USD has been sold off heavily on Tuesday to the lowest levels since 2020, down some 2.4% at the time of writing and falling from a high of 0.6161 to a low of 0.5986 as we head towards the early Asian open on Wednesday. The data from the US has been the culprit, sending the US dollar surging higher along with US yields. The Federal Reserve will release its policy decision at the close of its two-day meeting next week, on Sept. 20-21.

”The shock rebound in US Consumer Price Index (which the consensus assumed had peaked) reverberated violently through financial markets overnight, and has put NZD/USD back below the key 0.60 level this morning,” analysts at ANZ Bank said.

The data sent both the US dollar and bond yields sharply higher as the expectations for an oversized rate hike from the Federal Reserve. Inflation in the United States ran at an 8.3% annualized pace in August, ahead of expectations for an 8.0% rise. The markets generally expect 75 basis points when its policy committee meets next week and lower market hopes for a smaller increase.

However, there is a one-in-five chance that the Fed will raise rates by a full percentage point, up from zero a day before the CPI report according to FEDWATCH. Nomura analysts said on Tuesday that the Fed is likely to raise its short-term interest rate target by a full percentage point at its policy meeting next week, because of the emergence of upside inflation risks.

”The data make next week’s Fed decision more uncertain (it was looking much more assured yesterday,” the analysts at ANZ bank said. They look to today’s key event in the New Zealand current account data. ”We expect a deficit of 7.5% of Gross Domestic Product, and that’s big!”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5992 at the time of writing. Pair opened at 0.6136 and is trading with a change of -2.35 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6158, 50 SMA 0.6211, 100 SMA @ 0.6298 and 200 SMA @ 0.654.

The previous day high was 0.6159 while the previous day low was 0.6084. The daily 38.2% Fib levels comes at 0.613, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6112, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6093, 0.6051, 0.6018
• Pivot resistance is noted at 0.6169, 0.6202, 0.6244

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