#NZDUSD @ 0.58353 turns sideways after a sharp recovery to near 0.5820 ahead of Fed policy.

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• NZD/USD turns sideways after a sharp recovery to near 0.5820 ahead of Fed policy.

The pair currently trades last at 0.58353.

The previous day high was 0.5844 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.582, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5829, expected to provide support.

The NZD/USD pair clings to gains after a significant recovery from 11-month low around 0.5770. The Kiwi asset oscillates above 0.5800 as the focus shifts to the interest rate decision by the Federal Reserve (Fed), which will be announced on Wednesday.

S&P500 futures added significant gains in the European session, portraying an improvement in the risk-appetite of the market participants. US equities generated decent gains as investors hope that the Fed will keep interest rates unchanged in the range of 5.25-5.50% on Wednesday.

The Fed may keep interest rates steady but will keep doors open for further policy-tightening as inflation is still far from the desired rate of 2% and robust consumer spending due to tight labor market conditions could boost consumer inflation expectations.

The US Dollar Index (DXY) remains subdued near 106.50 in a data-packed week. The market participants would watch for private payrolls data and the ISM Manufacturing PMI for October, which will be published on Wednesday.

Investors will keenly observe the factory data as a recent survey from S&P Global showed that Manufacturing PMI met the 50.0 threshold for the first time after contracting for straight 11 months. A figure below the 50.0 threshold is considered as contraction.

On the New Zealand front, investors await the Q3 Employment data, which will be released on Tuesday. As per the consensus, hiring rose by 0.4% against 1.0% reading from the previous quarter. The Unemployment Rate is seen increasing to 3.9% against 3.6% recorded in the second quarter of 2023. The quarterly labor cost index eased marginally to 1.0% against the former reading of 1.1%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5829 at the time of writing. Pair opened at 0.581 and is trading with a change of 0.33 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5905, 50 SMA 0.592, 100 SMA @ 0.6035 and 200 SMA @ 0.6134.

The previous day high was 0.5844 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.582, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5829, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5795, 0.5781, 0.5756
• Pivot resistance is noted at 0.5834, 0.5859, 0.5874

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