#NZDUSD @ 0.58409 retraces recent gains ahead of Fed policy rate decision.
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- NZD/USD retraces recent gains ahead of Fed policy rate decision.
The pair currently trades last at 0.58409.
The previous day high was 0.5846 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.583, expected to provide support. Similarly, the daily 61.8% fib level is at 0.582, expected to provide support.
NZD/USD pulls back as the US Dollar (USD) rebounds after two days of losses, trading lower near 0.5840 during the early European session on Tuesday. Moreover, in September, the disappointing turn in the Chinese economic narrative unfolded with the NBS Manufacturing Purchasing Managers’ Index (PMI) unexpectedly contracting to 49.5. This outcome was contrary to the expected consistency at the 50.2 expansion observed in July.
The concerns about China’s economic conditions intensified as the NBS Services PMI also dropped to 50.6, falling short of the expected 51.8 and the previous reading of 51.7. The simultaneous contraction in both the manufacturing and services sectors raises substantial concerns about the overall economic health in China, which might undermine the Kiwi Dollar (NZD), given New Zealand’s status as the largest trading partner of China.
On New Zealand’s docket, the seasonally adjusted Building Permits (MoM) reported on Tuesday, declining by 4.7% compared to the previous drop of 0.7%. The Reserve Bank of New Zealand (RBNZ) is expected to adopt a more accommodative stance on interest rate hikes following the soft headline Consumer Price Index (CPI) data, which exerts pressure on the New Zealand Dollar (NZD).
The Employment Change and Unemployment Rate for the third quarter in New Zealand will likely to be crucial indicators that market participants will keenly observe later in the week. These data points provide valuable insights into the labor market, offering cues about the economic landscape, job creation, and overall employment conditions in the country.
United States (US) ADP Employment Change and ISM Manufacturing PMI for October may provide a broader perspective on the US economic situation. These data points can significantly influence market sentiment and contribute to the overall assessment of the economic health and performance of the United States.
Moreover, the anticipation that the US Fed interest rates will be maintained at 5.5% in the upcoming policy meeting is a crucial factor. This expectation, if realized, can lead to increased demand for US Treasury bills, putting downward pressure on US Treasury yields. The interplay of these dynamics is likely to impact the US Dollar (USD), making it an important consideration for traders in the current market environment.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.5839 at the time of writing. Pair opened at 0.5843 and is trading with a change of -0.07 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.5839 |
| 1 | Today Daily Change | -0.0004 |
| 2 | Today Daily Change % | -0.0700 |
| 3 | Today daily open | 0.5843 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.59, 50 SMA 0.5918, 100 SMA @ 0.6032 and 200 SMA @ 0.6131.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.5900 |
| 1 | Daily SMA50 | 0.5918 |
| 2 | Daily SMA100 | 0.6032 |
| 3 | Daily SMA200 | 0.6131 |
The previous day high was 0.5846 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.583, expected to provide support. Similarly, the daily 61.8% fib level is at 0.582, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.5816, 0.579, 0.5775
- Pivot resistance is noted at 0.5858, 0.5873, 0.5899
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.5846 |
| Previous Daily Low | 0.5805 |
| Previous Weekly High | 0.5874 |
| Previous Weekly Low | 0.5772 |
| Previous Monthly High | 0.6050 |
| Previous Monthly Low | 0.5847 |
| Daily Fibonacci 38.2% | 0.5830 |
| Daily Fibonacci 61.8% | 0.5820 |
| Daily Pivot Point S1 | 0.5816 |
| Daily Pivot Point S2 | 0.5790 |
| Daily Pivot Point S3 | 0.5775 |
| Daily Pivot Point R1 | 0.5858 |
| Daily Pivot Point R2 | 0.5873 |
| Daily Pivot Point R3 | 0.5899 |
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