#NZDUSD @ 0.56358 The NZD appreciates to 0.5650 after bouncing up from two-year lows at 0.5550. (Pivot Orderbook analysis)

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• The NZD appreciates to 0.5650 after bouncing up from two-year lows at 0.5550.
• The kiwi pares previous losses buoyed by brighter market sentiment.
• The focus is now on the release of New Zealand’s CPI data, due later today.

The pair currently trades last at 0.56358.

The previous day high was 0.573 while the previous day low was 0.555. The daily 38.2% Fib levels comes at 0.5619, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5661, expected to provide resistance.

The New Zealand dollar has opened the week on a firm footing to reach levels right below 0.5650 on Monday, after bouncing up from two-year lows of 0.5550.

The kiwi has been favoured by the brighter market sentiment on Monday, as the investors welcomed the comments of the new UK Finance Minister, confirming the U-turn on most of the aspects of the mini-Budget plan that roiled financial markets.

Investors’ optimism has been reflected in the positive stock markets on Monday. The US Dow Jones Index advances 1.76%, while the S&P trades 2.5% up and the Nasdaq. Technological Index rallies 3,2% at the time of writing.

The improved sentiment has weighed on US Treasury yields, sending the US dollar lower across the board. The US Dollar Index, which measures the value of the greenback against a basket of the most traded currencies is showing a 1.1% pullback, which erases the previous two weeks’ gains.

In New Zealand, the focus today will be on the release of the Q3 Consumer Prices Index figures. Inflation pressures are expected to have eased somewhat. This should not have a relevant impact on the pair, unless the final reading suggests a diversion in monetary policy expectations.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5633 at the time of writing. Pair opened at 0.5561 and is trading with a change of 1.29 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5705, 50 SMA 0.5989, 100 SMA @ 0.6138 and 200 SMA @ 0.6415.

The previous day high was 0.573 while the previous day low was 0.555. The daily 38.2% Fib levels comes at 0.5619, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5661, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5498, 0.5434, 0.5318
• Pivot resistance is noted at 0.5678, 0.5794, 0.5857

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