#NZDUSD @ 0.64643 bears move in as profit-taking ensues. (Pivot Orderbook analysis)

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• NZD/USD bears move in as profit-taking ensues.
• The markets will look to he the NZ Half Year Economic and Fiscal Update on Wednesday and the Fed.

The pair currently trades last at 0.64643.

The previous day high was 0.6423 while the previous day low was 0.6365. The daily 38.2% Fib levels comes at 0.6387, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6401, expected to provide support.

NZD/USD is higher by some 1.29% on the day as the markets take profits following a volatile spell on Wall Street and US data that showed softer inflation pressures in the month of November.

Both the Australian and New Zealand Dollars were tracking global shares higher into the US Consumer Price Index and rallied strongly when the data pointed towards a Federal Reserve pivot.

The Consumer Price Index has led to the markets pricing the terminal Fed rate down to 4.86% vs 4.98% prior to the report. Consequently, US stocks on Wall Street opened bid in the cash market with the NASDAQ jumping over 400 points and rallying over 3.3%. However, there has been a sharp turnaround in markets that have resulted in a reversal in the Kiwi as well.

”This is likely just the first leg of volatility to be expected this week, with the Fed decision,” analysts at ANZ Bank argued. ”Markets are now obviously going into it with a very dovish mindset – that’ll be fine if the Fed are dovish, but that doesn’t align at all well with recent comms, especially with US services inflation still rising, and the labour market so tight, and we may be in for a bumpy ride.”

”We get the he Half Year Economic and Fiscal Update today. This isn’t usually something FX markets watch, but if we do get extra bond supply, it could drive NZ interest rates up further, and that might be viewed in some quarters as a positive for the NZD.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6463 at the time of writing. Pair opened at 0.6386 and is trading with a change of 1.21 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6261, 50 SMA 0.5967, 100 SMA @ 0.6035 and 200 SMA @ 0.6278.

The previous day high was 0.6423 while the previous day low was 0.6365. The daily 38.2% Fib levels comes at 0.6387, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6401, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.636, 0.6334, 0.6303
• Pivot resistance is noted at 0.6418, 0.6449, 0.6475

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