#NZDUSD @ 0.56374 The Kiwi retraces previous losses before hitting resistance at 0.5655. (Pivot Orderbook analysis)

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• The Kiwi retraces previous losses before hitting resistance at 0.5655.
• The dollar loses ground as the impact of the US CPI report wanes.
• NZD/USD: Below 0.5700 more weakness is likely – UOB.

The pair currently trades last at 0.56374.

The previous day high was 0.5717 while the previous day low was 0.556. The daily 38.2% Fib levels comes at 0.5657, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.562, expected to provide support.

The New Zealand dollar has bounced strongly from session lows near 0.5500 retracing all the ground lost after the release of the US CPI report. The pair turned positive on the daily chart before hitting resistance at the 1.5655 area.

The greenback has lost ground through the US trading session, as the market digested the unexpectedly high US inflation figures released in September’s CPI report.

According to the US Bureau of Labor Statistics, consumer inflation accelerated at a 0.4% pace in September, and 8.3% year-on-year, beating expectations of 0.4% and 8,1% respectively. These figures boosted hopes of a 100 basis point hike in November and pushed the US dollar higher across the board.

In New Zealand, the focus is on the release of September’s Business NZ PMI due later today. Business activity is expected to decelerate to 52.5 from 54.9 the month before, probably as a result of the hawkish turn of the Reserve Bank of New Zealand.

According to FX analysts a UOB, however, the pair remains skewed to the downside while below 0.5700: “Despite dropping to a fresh year’s low of 0.5561 earlier this week, downward momentum is not strong. However, as long as the ‘strong resistance’ at 0.5700 is not breached, NZD could weaken further. That said, any further decline is expected to face solid support at 0.5535.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5637 at the time of writing. Pair opened at 0.5609 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 @ 0.5743, 50 SMA 0.6016, 100 SMA @ 0.6156 and 200 SMA @ 0.6427.

The previous day high was 0.5717 while the previous day low was 0.556. The daily 38.2% Fib levels comes at 0.5657, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.562, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5541, 0.5472, 0.5384
• Pivot resistance is noted at 0.5697, 0.5785, 0.5854

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