Bearish sentiment has entered the market for the NZDUSD pair, with the US Dollar gaining strength.

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• NZD/USD bears are in the market as the US Dollar perks up.

The pair currently trades last at 0.60722.

The previous day high was 0.6202 while the previous day low was 0.6143. The daily 38.2% Fib levels comes at 0.6165, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6179, expected to provide resistance.

NZD/USD is flat in the open in Asia after falling out of the sky this week from a high of 0.6200 and reaching a low of 0.6069 on Wednesday. The pair was sunk on the back of the movements in the Aussie following the inflation data.

Analysts at ANZ Bank explained, ”in the Kiwi’s case, 0.6080/85 support (23.6% Fibo of the April-June fall) hasn’t been solid, but it’s just above there as we write.”

”We thought AU CPI data would unleash volatility and it has, but the trouble is, it hasn’t really clarified the market’s view on whether the RBA will hike or not next week and that’s the next hurdle for the AUD, and by correlation the Kiwi.”

”We expect a hike, mostly because we don’t think inflation is falling quickly enough, but let’s see. NZ ANZBO data today will be watched closely, which may add some local flair to the Kiwi narrative, which remains very global,” the analysts explained.

Meanwhile, the US Dollar has perked up. Signs of economic resilience to higher borrowing costs wiped out the recent support from safety demand while the US Dollar makes traction as US data remain strong. More US data will come out this weekend so far it has been an improvement on last weeks.

The latest data showed that US Consumer Confidence jumped to a nearly 1-1/2-year high in June, while business spending, durable goods orders and home sales held up in May.

As for sentiment around the Federal Reserve, the WIRP suggests a 25 bp hike is nearly priced in for September, with odds of a second 25 bp hike topping out near 10% for November. Analysts at Brown Brothers Harriman explained that the PCE data on Friday may help solidify those odds, with headline expected at 3.8% YoY vs. 4.4% in April and core expected to remain steady at 4.7% YoY.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6075 at the time of writing. Pair opened at 0.6163 and is trading with a change of -1.43 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6135, 50 SMA 0.6172, 100 SMA @ 0.6202 and 200 SMA @ 0.6158.

The previous day high was 0.6202 while the previous day low was 0.6143. The daily 38.2% Fib levels comes at 0.6165, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6179, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6137, 0.6111, 0.6078
• Pivot resistance is noted at 0.6195, 0.6228, 0.6254

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