#NZDUSD @ 0.56914 A combination of supporting factors pushes higher for the second straight day. (Pivot Orderbook analysis)

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• A combination of supporting factors pushes NZD/USD higher for the second straight day.
• Hotter-than-expected domestic consumer inflation figures boost the New Zealand dollar.
• A softer US bond yields, the risk-on impulse weighs on the USD and remains supportive.

The pair currently trades last at 0.56914.

The previous day high was 0.565 while the previous day low was 0.5551. The daily 38.2% Fib levels comes at 0.5612, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5589, expected to provide support.

The NZD/USD pair hits a one-and-half-week high during the first half of trading on Tuesday, with bulls now awaiting sustained strength beyond the 0.5700 round-figure mark.

A combination of factors allows the NZD/USD pair to gain strong follow-through traction for the second successive day and recover further from its lowest level since March 2020 touched last week. The New Zealand dollar gets a strong boost from hotter domestic consumer inflation figures, which smashed estimates and lifted bets for a more aggressive rate hike by the RBNZ. Apart from this, the prevalent US dollar selling bias further contributes to the ongoing positive move.

In fact, the USD Index, which measures the greenback’s performance against a basket of currencies, drops to over a one-week low amid a softer tone surrounding the US Treasury bond yields. Apart from this, the risk-on impulse exerts additional downward pressure on the safe-haven buck and benefits the risk-sensitive kiwi. With the latest leg up, the NZD/USD pair seems to have confirmed a bullish breakout through the 0.5650 supply zone and seems poised to appreciate further.

That said, a combination of factors might hold back bulls from placing aggressive bets and keep a lid on any meaningful upside. Concerns about the economic headwinds stemming from rapidly rising borrowing costs, geopolitical risks and China’s zero-COVID policy could cap the optimistic move in the markets. Furthermore, growing acceptance that the Fed will continue to hike interest rates at a faster pace should act as a tailwind for the USD. This, in turn, warrants caution for bullish traders.

Market participants now look forward to the US economic docket, featuring the release of Industrial Production data and Capacity Utilization Rate later during the early North American session. This, along with the US bond yields and the broader market risk sentiment, will influence the USD price dynamics and provide some impetus to the NZD/USD pair. The focus will then turn to important macro data from China, due for release during the Asian session on Wednesday.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5694 at the time of writing. Pair opened at 0.5628 and is trading with a change of 1.17 % .

The pair is trading above its 20 Daily moving average @ 0.5689, below its 50 Daily moving average @ 0.5976 , below its 100 Daily moving average @ 0.6129 and below its 200 Daily moving average @ 0.641

The previous day high was 0.565 while the previous day low was 0.5551. The daily 38.2% Fib levels comes at 0.5612, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5589, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.557, 0.5511, 0.5471
• Pivot resistance is noted at 0.5669, 0.5709, 0.5767

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