#NZDUSD @ 0.63493 meets with a fresh supply on Tuesday, though the downside remains cushioned. (Pivot Orderbook analysis)

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• NZD/USD meets with a fresh supply on Tuesday, though the downside remains cushioned.
• The ongoing USD retracement slide from multi-week high acts as a tailwind for the major.
• Traders also seem reluctant to place aggressive bets and keenly await the key US CPI data.

The pair currently trades last at 0.63493.

The previous day high was 0.6367 while the previous day low was 0.6289. The daily 38.2% Fib levels comes at 0.6337, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6319, expected to provide support.

The NZD/USD pair attracts some sellers following an early uptick to the 0.6365 area and reverses a part of the previous day’s positive move. The pair remains depressed heading into the North American session and is currently placed near the lower end of its daily range, just below mid-0.6300s.

The downside for the NZD/USD pair, meanwhile, remains limited amid strong follow-through selling around the US Dollar, which is seen extending the overnight pullback from a multi-week high. A further decline in the US Treasury bond yields, along with signs of stability in the financial markets, turn out to be a key factor weighing on the safe-haven Greenback. Traders, however, seem reluctant to place aggressive bets and keenly await the release of the latest US consumer inflation figures.

The crucial US CPI report will play a key role in influencing the Fed’s rate-hike path, which, in turn, should drive the USD demand and help determine the near-term trajectory for the NZD/USD pair. In the meantime, the risk of stronger US inflation data should help limit the USD losses. The expectations were fueled by the US Labor Department’s annual revisions of CPI data last Friday, which showed that monthly consumer prices rose in December instead of falling as previously estimated.

Moreover, several Federal Open Market Committee (FOMC) policymakers, including Fed Chair Jerome Powell, recently stressed the need for additional interest rate hikes to fully gain control of inflation. Hence, any positive surprise from the US CPI print should allow the US central bank to stick to its hawkish stance for longer. This could trigger a fresh leg up for the USD and set the stage for an extension of the NZD/USD pair’s recent pullback from its highest level since June 2022.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6341 at the time of writing. Pair opened at 0.6359 and is trading with a change of -0.28 % .

The pair is trading below its 20 Daily moving average @ 0.6417, below its 50 Daily moving average @ 0.6373 , above its 100 Daily moving average @ 0.6136 and above its 200 Daily moving average @ 0.6187

The previous day high was 0.6367 while the previous day low was 0.6289. The daily 38.2% Fib levels comes at 0.6337, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6319, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.631, 0.626, 0.6232
• Pivot resistance is noted at 0.6388, 0.6416, 0.6466

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