#NZDUSD @ 0.62261 reclaims the 0.6200 figure after Monday’s US banking crisis dented sentiment. (Pivot Orderbook analysis)

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• NZD/USD reclaims the 0.6200 figure after Monday’s US banking crisis dented sentiment.
• US CPI figures came aligned with estimates, though inflation remains elevated.
• Traders eye US Retail Sales, PPI, and New Zealand GDP for Q4, 2022.

The pair currently trades last at 0.62261.

The previous day high was 0.6265 while the previous day low was 0.6131. The daily 38.2% Fib levels comes at 0.6214, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6182, expected to provide support.

NZD/USD bounces off weekly lows of 0.6084 and rises, even though an inflation report in the United States (US) warrants further tightening by the US Federal Reserve (Fed). The NZD/USD stays firm at around 0.6221 after clearing the 20-day Exponential Moving Average (EMA).

Stocks went up again as worries about three US banks collapsing eased. The US Department of Labor (DoL) reported that yearly inflation in February matched predictions. The headline inflation measure, the Consumer Price Index (CPI), increased by 6%. Excluding food and energy, known as the core CPI, rose by 5.5%. Monthly readings witnessed the CPI at 0.4%, as expected, while the measure that excludes food and energy was 0.5%, higher than anticipated.

US central bank chief Jerome Powell said last week that the main interest rate would go higher than planned. He also noted that solid economic data would make interest rates rise faster. But the recent problems in the US banking system make traders expect a less aggressive central bank as they worry that more banks could go bankrupt.

US Treasury bond yields are up after Monday’s knee-jerk reaction plummeted them. The US 2s and 10s are back within familiar levels, with 2s at 4.389%, up 40 bps, while 10s are at 3.659%. Given that backdrop, the greenback’s fall stopped, as shown by the US Dollar Index (DXY). The DXY is gaining 0.17%, at 103.801.

On the New Zealand (NZ) front, an absent economic docket left traders adrift to market sentiment and US Dollar (USD) dynamics. However, on Wednesday, the NZ calendar will feature the Gross Domestic Product (GDP) for Q4, estimated at 3.3% YoY and -0.2% QoQ. On the US side, the calendar will feature Retail Sales and the Producer Price Index (PPI).

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6221 at the time of writing. Pair opened at 0.622 and is trading with a change of 0.02 % .

The pair is trading above its 20 Daily moving average @ 0.6206, below its 50 Daily moving average @ 0.6317 , below its 100 Daily moving average @ 0.6245 and above its 200 Daily moving average @ 0.6167

The previous day high was 0.6265 while the previous day low was 0.6131. The daily 38.2% Fib levels comes at 0.6214, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6182, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6145, 0.6071, 0.6011
• Pivot resistance is noted at 0.628, 0.6339, 0.6414

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