#NZDUSD @ 0.62401 is on a bullish ride in a relaxed market mood. (Pivot Orderbook analysis)

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• NZD/USD is on a bullish ride in a relaxed market mood.
• US CPI comes in almost in line with softening service-led inflation.
• The New Zealand GDP data is in focus on measuring the cyclone impact.

The pair currently trades last at 0.62401.

The previous day high was 0.6248 while the previous day low was 0.6198. The daily 38.2% Fib levels comes at 0.6229, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6217, expected to provide support.

NZD/USD is keeping its bullish momentum intact after hitting the low near0.6220 level. The NZD/USD advance comes on the back of US Dollar weakness amid falling US Treasury bond yields. The high beta currency was also kicked up by firmer equity complexes from the last three days.

The US Dollar-driven move underpinned the pair, earlier in the week, after the recent fallout of Silicon Valley Bank (SVB) and Signature Bank. The aforementioned incident made a direct impact on US Treasury yield complexes.

The shorter end of the yield curve has come under considerable pressure after the SVB fallout and prompted investors to price out for a 50 basis point (bps) rate hike expectation for the March FOMC meeting.

Even though the worsening underlying financial ecosystem has prompted the market participants to range from no Fed rate hike to a 25 bps hike.

Meanwhile, the US Consumer Price Index (CPI) released on Tuesday came in line with expectations. The headline MoM figure came in at 0.4% as expected, from the prior 0.5%, and the YoY figure came in at 6% in line with expectation, from the prior 6.4%. The MoM core reading came in slightly higher at 0.5% vs. 0.4% expected, from the prior 0.4% and core YoY 5.5% in line with the expectation from the prior 5.6%.

On the other hand, the economic calendar will feature the Gross Domestic Product (GDP) data for New Zealand on Thursday. The quarterly reading for Q4, 2022 is expected around -0.2%, QoQ, and 3.3% YoY from the prior 2% and 6.4%, respectively. The expected slowdown is attributed to Cyclone Gabrielle, which has affected at least a third of New Zealand’s population of five million. Any significant deviation on the downside may prompt the Reserve Bank of New Zealand (RBNZ) to take a pause in the rate hiking cycle.

The immediate focus now remains on the Chinese activity data for fresh trading impetus on the Kiwi pair.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6237 at the time of writing. Pair opened at 0.6237 and is trading with a change of 0.0 % .

The pair is trading above its 20 Daily moving average @ 0.6201, below its 50 Daily moving average @ 0.6317 , below its 100 Daily moving average @ 0.625 and above its 200 Daily moving average @ 0.6165

The previous day high was 0.6248 while the previous day low was 0.6198. The daily 38.2% Fib levels comes at 0.6229, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6217, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6207, 0.6177, 0.6157
• Pivot resistance is noted at 0.6257, 0.6278, 0.6308

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