#NZDUSD @ 0.59790 is marching towards 0.6000 as value bet triggers inertia for kiwi bulls. (Pivot Orderbook analysis)

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• NZD/USD is marching towards 0.6000 as value bet triggers inertia for kiwi bulls.
• A higher-than-expected US Michigan CSI will strengthen the DXY further.
• An upbeat Business NZ PMI is supporting the antipodean.

The pair currently trades last at 0.59790.

The previous day high was 0.6027 while the previous day low was 0.5964. The daily 38.2% Fib levels comes at 0.5988, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6003, expected to provide resistance.

The NZD/USD pair witnessed a rebound after printing a low of 0.5955 in the Tokyo session. The asset has extended its recovery after overstepping the immediate hurdle of 0.5974 and is marching higher to recapture the psychological resistance of 0.6000. Also, the asset has entered into the prior balanced area, which was formed in a narrow range of 0.5977-0.6026.

The major is scaling higher as the US dollar index (DXY) is displaying a subdued performance. Also, the risk-off profile is fading away as investors have shrugged off clouds of uncertainty. As investors have started discounting the fact that the Federal Reserve (Fed) is preparing for a bumper rate hike announcement to cool down the ultra-hot inflation, commodity-linked currencies are gaining strength. The value bet catalyst is bringing bids into the counter.

In today’s session, investors’ entire focus will be on US Michigan Consumer Sentiment Index data, which is seen higher at 60.0 vs. the prior release of 58.2. It is worth noting that the sentiment data is in a recovery mode after dropping to 50 in June. In the past two months, the confidence of consumers is returning led by a solid labor market and falling gasoline prices.

On the NZ front, higher-than-expected Business NZ PMI numbers are supporting the kiwi bulls. The economic data has landed higher at 54.9 against the forecasts of 52.5 and the prior release of 52.7. Next week, the critical trigger for the antipodean will be the interest rate decision by the People’s Bank of China (PBOC). The central bank is expected to trim its Prime Lending Rate (PLR) to scale up inflation. China’s monetary policy has a significant impact on kiwi bulls as NZ is a leading trading partner of China.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5979 at the time of writing. Pair opened at 0.5968 and is trading with a change of 0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6111, 50 SMA 0.62, 100 SMA @ 0.628 and 200 SMA @ 0.6528.

The previous day high was 0.6027 while the previous day low was 0.5964. The daily 38.2% Fib levels comes at 0.5988, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6003, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5946, 0.5923, 0.5882
• Pivot resistance is noted at 0.6009, 0.605, 0.6072

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