#NZDUSD @ 0.62397 is looking to print a fresh three-month high above 0.6250 amid multiple tailwinds. (Pivot Orderbook analysis)

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• NZD/USD is looking to print a fresh three-month high above 0.6250 amid multiple tailwinds.
• Widened RBNZ-Fed policy divergence, positive market sentiment, and a weak US Dollar have supported the Kiwi Dollar.
• A significant improvement in US Durable Goods Orders has failed to support the US Dollar.

The pair currently trades last at 0.62397.

The previous day high was 0.6163 while the previous day low was 0.6093. The daily 38.2% Fib levels comes at 0.6136, expected to provide support. Similarly, the daily 61.8% fib level is at 0.612, expected to provide support.

The NZD/USD pair is on the edge of refreshing its three-month high above 0.6250 ahead. The presence of multiple tailwinds such as risk-on profile, widened Reserve Bank of New Zealand (RBNZ)-Federal Reserve (Fed) policy divergence, and weak US Dollar Index (DXY) have strengthened the Kiwi Dollar against the Greenback.

The risk profile is extremely upbeat as plenty of Fed policymakers are expecting a slowdown in the rate hike pace ahead. Positive market sentiment empowered the S&P500 to carry forward its upside momentum on Wednesday. Meanwhile, the US dollar index (DXY) slipped firmly to near 106.10 despite a robust increase in demand for Durable Goods.

The US Durable Goods Orders data landed at 1%, significantly higher than the estimates and the prior release of 0.4%. This has indicated that consumer demand is still solid despite accelerating interest rates and higher inflation rates.

The returns on US Treasury bonds have dropped further as the minutes of the Federal Open Market Committee (FOMC) dictated that a slowdown in the rate hike pace would allow Fed chair Jerome Powell to judge progress on their goals. The 10-year US Treasury yields have dropped below 3.70%.

On the New Zealand front, investors are still in a hangover of 75 basis points (bps) rate hike and consideration of the full percent rate in its monetary policy meeting on Wednesday. It seems that the battle against a historic surge in inflation is demanding more blood and sweat from RBNZ Governor Adrian Orr. The RBNZ has pushed its Official Cash Rate (OCR) to 4.25%, which has widened the RBNZ-Fed policy divergence.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.624 at the time of writing. Pair opened at 0.6152 and is trading with a change of 1.43 % .

The pair is trading above its 20 Daily moving average @ 0.5972, above its 50 Daily moving average @ 0.5827 , above its 100 Daily moving average @ 0.6017 and below its 200 Daily moving average @ 0.6307

The previous day high was 0.6163 while the previous day low was 0.6093. The daily 38.2% Fib levels comes at 0.6136, expected to provide support. Similarly, the daily 61.8% fib level is at 0.612, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.611, 0.6067, 0.604
• Pivot resistance is noted at 0.6179, 0.6206, 0.6249

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