#NZDUSD @ 0.62332 is sensing heat in climbing above the 0.6240 resistance despite a firmer appeal for risk-sensitive assets. (Pivot Orderbook analysis)

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• NZD/USD is sensing heat in climbing above the 0.6240 resistance despite a firmer appeal for risk-sensitive assets.
• A promise of a cyclone relief package by NZ PM Hipkins in an already inflated environment will worsen the situation further.
• An upbeat US labor market and consumer spending could propel the US PCE Inflation data.

The pair currently trades last at 0.62332.

The previous day high was 0.6252 while the previous day low was 0.6202. The daily 38.2% Fib levels comes at 0.6233, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6221, expected to provide support.

The NZD/USD pair is facing barricades in overstepping the immediate resistance of 0.6240 in the Tokyo session. Earlier, the Kiwi asset displayed a solid rebound from the round-level support of 0.6200 as investors shrugged off hawkish Federal Reserve (Fed)-inspired volatility.

The asset is likely to remain directionless as investors are awaiting the release of the United States Personal Consumption Expenditure (PCE) Price Index for fresh cues. The US Dollar Index (DXY) is demonstrating signs of volatility contraction amid a mixed market mood. The recovery moves from the risk-sensitive assets are bizarre in comparison with the price action by the USD Index.

S&P500 futures have recovered their entire losses as investors have stopped worrying about higher rates by the Fed for a longer period in its battle against persistent inflation. Accordingly, the 10-year US Treasury yields have dropped further below 3.87%.

The recent promise of a cyclone relief package by the New Zealand Prime Minister (PMI) Chris Hipkins has set inflation projections on fire. It is worth noting that the New Zealand economy is already suffering from galloping inflation and now further inducement is making the inflation situation more vulnerable.

Regarding interest rate projections, Reserve Bank of New Zealand (RBNZ) Assistant Governor, Karen Silk cited “The projected cash rate peak is not set in stone.” He further added that all rate hike options are on the table for the April meeting and the RBNZ will do all it takes to control inflation.

The week is expected to end with a power-pack action propelled by the release of US PCE Inflation data. The street is expecting a rebound in the price pressures as the US labor market is getting stronger each day and households’ spending has recovered dramatically.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6232 at the time of writing. Pair opened at 0.6233 and is trading with a change of -0.02 % .

The pair is trading below its 20 Daily moving average @ 0.6334, below its 50 Daily moving average @ 0.6352 , above its 100 Daily moving average @ 0.6181 and above its 200 Daily moving average @ 0.6185

The previous day high was 0.6252 while the previous day low was 0.6202. The daily 38.2% Fib levels comes at 0.6233, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6221, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6206, 0.6179, 0.6156
• Pivot resistance is noted at 0.6256, 0.6279, 0.6306

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