#NZDUSD @ 0.56049 The Kiwi gains traction and reaches session highs past 0.5600. (Pivot Orderbook analysis)

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• The Kiwi gains traction and reaches session highs past 0.5600.
• The
• US dollar loses ground after the release of the Fed’s minutes.
• NZD/USD’s downtrend could extend to 0.50 – ING

The pair currently trades last at 0.56049.

The previous day high was 0.5658 while the previous day low was 0.5536. The daily 38.2% Fib levels comes at 0.5611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5583, expected to provide support.

The New Zealand dollar is taking advantage of a moderate US dollar pullback. The pair has rushed past 0.5600 on Wednesday’s US session, to hit session highs at 0.5630 so far.

The greenback lost ground immediately after the release of September’s Federal Reserve meeting minutes. The US Dollar Index has dropped to session lows below 113.00, triggering moderate advances on its main rivals.

The Federal Reserve’s minutes reflect the committee’s surprise at the pace of inflation and reiterate the bank’s commitment to keeping hiking rates until the problem shows signs of resolving.

Investors, however, have analyzed one comment as a potential sign of moderation in the monetary tightening pace, which might explain USD’s reversal. According to the meeting minutes, “Several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook,”

From a wider perspective, FX analysts at ING remain bearish in the long-term: The Reserve Bank of New Zealand hiked by another 50 bps in October and signalled more tightening is on the way. Another 50 bps increase is largely expected at the November meeting. The role of monetary policy remains secondary compared to global risk dynamics (…) NZD/USD is looking at the 0.50 2009 lows as the next key support”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5614 at the time of writing. Pair opened at 0.5586 and is trading with a change of 0.5 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5763, 50 SMA 0.6029, 100 SMA @ 0.6165 and 200 SMA @ 0.6433.

The previous day high was 0.5658 while the previous day low was 0.5536. The daily 38.2% Fib levels comes at 0.5611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5583, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5529, 0.5471, 0.5407
• Pivot resistance is noted at 0.5651, 0.5715, 0.5773

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