#NZDUSD @ 0.63287 is demonstrating a sideways performance despite improving risk appetite. (Pivot Orderbook analysis)

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• NZD/USD is demonstrating a sideways performance despite improving risk appetite.
• NZ PM Hipkins has announced that minimum wages will increase in line with inflation.
• US Biden’s commentary to protect US sovereignty from China might trigger US-China tensions again.

The pair currently trades last at 0.63287.

The previous day high was 0.6363 while the previous day low was 0.6272. The daily 38.2% Fib levels comes at 0.6328, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6307, expected to provide support.

The NZD/USD pair is displaying back-and-forth moves around 0.6320 in the Tokyo session. The Kiwi asset has not reacted much to the announcement by novel New Zealand Prime Minister Chris Hipkins that minimum wages will be increased in line with the Consumer Price Index (CPI).

NZ Hipkins cited that the income insurance scheme will not continue as proposed and the policy should be refocused on the expense of living. He claimed that a rise in the minimum wage will have a small inflation impact.

It is worth noting that the Reserve Bank of New Zealand (RBNZ) has not confirmed that the interest rate has peaked despite a marginal slowdown in the fourth quarter figures. Therefore, even a minor upside trigger to the inflation rate could create significant troubles for the RBNZ.

Meanwhile, US President Joe Biden has addressed the State of the Union (SOTU) for the second time and the first time against the divided Congress. US President sounded tough on China citing “If China threatens US sovereignty, US will act to protect the country.”

Over tax reforms, US President has proposed to tax billionaires heavily by quadrupling corporate buyback taxes. S&P500 futures appear subdued, at the press time, but could turn volatile as more taxes on investors could trigger a sell-off. The risk appetite is improving as investors have digested the hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell. Also, the yields generated by 10-year US Treasury bonds have dropped to near 3.65%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6325 at the time of writing. Pair opened at 0.6321 and is trading with a change of 0.06 % .

The pair is trading below its 20 Daily moving average @ 0.6428, below its 50 Daily moving average @ 0.6375 , above its 100 Daily moving average @ 0.6114 and above its 200 Daily moving average @ 0.6189

The previous day high was 0.6363 while the previous day low was 0.6272. The daily 38.2% Fib levels comes at 0.6328, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6307, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6274, 0.6228, 0.6183
• Pivot resistance is noted at 0.6365, 0.641, 0.6456

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