#NZDUSD @ 0.62020 rebounds from 0.6181 low as Silicon Valley Bank deal eases banking crisis concerns. (Pivot Orderbook analysis)

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• NZD/USD rebounds from 0.6181 low as Silicon Valley Bank deal eases banking crisis concerns.
• Making inflation their top priority, Fed officials.
• Upcoming US Personal Consumption Expenditure (PCE) data release to influence US Dollar dynamics.

The pair currently trades last at 0.62020.

The previous day high was 0.6256 while the previous day low was 0.6192. The daily 38.2% Fib levels comes at 0.6216, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6232, expected to provide resistance.

The NZD/USD currency pair experienced a slight rebound after reaching the 0.6181 mark, following a significant decline over several days due to jittery market sentiment amid the ongoing banking crisis.

The New Zealand dollar struggled last week as bank stress impacted risk appetites. However, on Monday, the risk-sensitive currency found some support following the Silicon Valley Bank (SVB) deal and the Federal Deposit Insurance Corporation’s (FDIC) confirmation that First Citizens bank would assume all deposits and loans of Silicon Valley Bridge Bank from the FDIC.

Bloomberg reported that US regulators are considering expanding an emergency lending facility for banks, allowing First Republic Bank (FRC) more time to strengthen its balance sheet.

Over the weekend, Federal Reserve (Fed) voter Kashkari spoke with a dovish tone, emphasizing the uncertainty of the banking crisis’s impact on the economy and the Fed’s close monitoring of the situation. This contrasts with the hawkish views of non-voting colleagues Barkin and Bullard, who focused on addressing inflation over financial stability.

Fed Vice-Chair of Supervision Barr, in recent testimony, reassured that the banking system remains sound and resilient, with the Fed committed to ensuring deposit safety. He also discussed planned regulations to enhance the financial system’s resiliency, including long-term debt requirements for large banks, improved stress testing, and exploration of liquidity rules and other reforms.

Market focus now shifts to the upcoming US Personal Consumption Expenditure (PCE) data release later this week, which will likely shape US Dollar dynamics.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.62 at the time of writing. Pair opened at 0.6202 and is trading with a change of -0.03 % .

The pair is trading above its 20 Daily moving average @ 0.6196, below its 50 Daily moving average @ 0.6297 , below its 100 Daily moving average @ 0.6282 and above its 200 Daily moving average @ 0.6161

The previous day high was 0.6256 while the previous day low was 0.6192. The daily 38.2% Fib levels comes at 0.6216, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6232, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6177, 0.6153, 0.6113
• Pivot resistance is noted at 0.6241, 0.6281, 0.6305

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