NZDUSD pares recent gains as bulls step back from 1.5-month high, snaps two-day uptrend. (Pivot Orderbook analysis)

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• NZDUSD pares recent gains as bulls step back from 1.5-month high, snaps two-day uptrend.
• RBNZ Inflation Expectations improved to 3.62% for two-year, 5.08% for one year.
• Sour sentiment, China’s covid woes exert downside pressure on prices.
• Lackluster moves expected ahead of US CPI, risk-aversion may help please bears.

The pair currently trades last at 0.5931.

The previous day high was 0.5946 while the previous day low was 0.5844. The daily 38.2% Fib levels comes at 0.5908, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5883, expected to provide support.

NZDUSD bulls take a breather at the multi-day high during a sluggish Tuesday morning in Europe. With this, the Kiwi pair remains mildly offered near 0.5930 after rising to the highest levels since September 20, snapping a two-day uptrend.

In doing so, the quote fails to justify the strong points of the Reserve Bank of New Zealand’s (RBNZ) Inflation Expectations for the fourth quarter (Q4). That said, the RBNZ one-year inflation expectations rose from 4.86% to 5.08% QoQ whereas the more closely watched two-year counterpart increased to 3.62% compared to 36.07% marked in the third quarter (Q3).

A lack of major data/events and recently firmer covid numbers from China dim the market’s previous optimism, which in turn allowed the US dollar to lick its wounds during an inactive session.

China reported the biggest jump in the fresh daily coronavirus numbers since April, which in turn justifies the dragon nation’s previous defense of the zero-covid policy.

Elsewhere, indecision over the US Federal Reserve’s (Fed) next move and the cautious mood ahead of the US Consumer Price Index (CPI) for October, as well as the US mid-term election, also underpin the US dollar’s corrective bounce.

Amid these plays, the US Treasury yields are firmer and stock futures remain indecisive but the US Dollar Index (DXY) rebounds from a one-week low.

Moving on, NZDUSD may witness further pullback but the bullish chart pattern and expectations of easy inflation might defend the pair buyers.

A one-month-old ascending trend channel keeps NZDUSD buyers hopeful between 0.6000 and 0.6220.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5931 at the time of writing. Pair opened at 0.594 and is trading with a change of -0.15% % .

The pair is trading above its 20 Daily moving average @ 0.5737, above its 50 Daily moving average @ 0.5827 , below its 100 Daily moving average @ 0.6035 and below its 200 Daily moving average @ 0.6338

The previous day high was 0.5946 while the previous day low was 0.5844. The daily 38.2% Fib levels comes at 0.5908, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5883, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5874, 0.5808, 0.5772
• Pivot resistance is noted at 0.5976, 0.6012, 0.6078

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