The NZDUSD pair bounces back strongly from 0.6120, showing a strong recovery just before the release of the Federal Reserve’s preferred inflation measure.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• NZD/USD delivers a solid recovery from 0.6120 ahead of Fed’s preferred inflation gauge.

The pair currently trades last at 0.61718.

The previous day high was 0.6274 while the previous day low was 0.6174. The daily 38.2% Fib levels comes at 0.6212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6236, expected to provide resistance.

The NZD/USD pair finds stellar buying interest near 0.6120 after a sell-off in the European session. The Kiwi asset demonstrates V-shape recovery as the US Dollar has come under scrutiny ahead of the United States Q2 Employment cost index and core Personal Consumption Expenditure (PCE) price index data, which will be published at 12:30 GMT.

S&P500 futures have generated decent gains in the London session, portraying some recovery in the risk appetite of the market participants. US equities faced significant pressure on Thursday as the upbeat performance of the United States economy in the April-June quarter stemmed fears of an interest rate hike by the Federal Reserve (Fed) in September.

US Q2 Gross Domestic Product (GDP) and June’s Durable Goods Orders data remained robust, indicating solid momentum in consumer spending. Also, jobless claims remained lower last week, conveying that employment program by firms is maintaining momentum.

Going forward, investors will keep an eye on Fed’s preferred inflation gauge. The impact is expected to remain light as Fed officials will give more weightage to July’s PCE data for September policy. Analysts at BBH expect that headline PCE is expected at 3.0% y/y vs. 3.8% in May, while core is expected at 4.2% y/y vs. 4.6% in May.

On the New Zealand Dollar front, investors will focus on Q2 Employment data, which will release on Wednesday. NZ’s jobless rate has remained at record lows consistently. Loosening labor market conditions would allow the Reserve Bank of New Zealand (RBNZ) to maintain interest rates steady at 5.5%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6165 at the time of writing. Pair opened at 0.6183 and is trading with a change of -0.29 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6227, 50 SMA 0.6167, 100 SMA @ 0.6198 and 200 SMA @ 0.6217.

The previous day high was 0.6274 while the previous day low was 0.6174. The daily 38.2% Fib levels comes at 0.6212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6236, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6147, 0.611, 0.6047
• Pivot resistance is noted at 0.6247, 0.631, 0.6347

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...