#NZDUSD @ 0.62071 Sentiment deterioration, amidst mixed Fed signals, weakened the NZD. (Pivot Orderbook analysis)

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• Sentiment deterioration, amidst mixed Fed signals, weakened the NZD.
• Inflation expectations in the United States moved higher, according to Americans.
• NZD/USD traders are eyeing next week’s NZ CPI report.

The pair currently trades last at 0.62071.

The previous day high was 0.6316 while the previous day low was 0.6203. The daily 38.2% Fib levels comes at 0.6273, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6246, expected to provide resistance.

NZD/USD snapped two days of consecutive gains and slid past the 200, 50, and 100-day Exponential Moving Averages (EMAs) on a risk-off impulse spurred by Fed’s hawkish commentary and expectations for further tightening. US economic data showed further deterioration, but inflation expectations increased the likelihood of another Fed hike past the May meeting. At the time of writing, the NZD/USD is trading at 0.6207, down 1.38%.

Wall Street is set to finish the last trading day of the week with losses. US data in the United States (US) showed that the economy is slowing down, as demonstrated by Retail Sales and Industrial Production. March’s sales dropped 1% MoM, below an anticipated contraction of 0.4%, while YoY figures came at 2.9%, below the prior’s month 5.9%. Meanwhile, Industrial Production (IP) fell for the first occasion in the year and grew 0.4% MoM, below February’s 0.9% reading.

In the meantime, a poll published by the University of Michigan revealed that American consumer sentiment in April improved to 63.5 from the previous reading of 62. The same report flashed that inflation expectations rose to 4.6% from 3.6% in the prior’s report.

Those two reasons drove the NZD/USD price action. As the data was released, the NZD/USD hovered around 0.6260 before collapsing toward the day’s low of 0.6195.

Additionally, to the abovementioned, Federal Reserve officials continued to cross newswires, though they gave mixed signals. Atlanta’s Fed President Raphael Bostic said he favors one more hike, then asses what’s needed in monetary policy. Contrarily, Fed Governor Christopher Waller noted that further tightening is need for a “substantial period and longer than markets anticipate.” Chicago’s President Austan Golsbee said he would focus on tighter credit conditions and lending data regarding his decision for the upcoming May 2-3 meeting.

On the New Zealand (NZ) front, the Business PMIS came at 48.1, below the prior’s month 51.7. Data was mainly ignored by NZD/USD traders, focusing on the following week’s CPI report, with estimates of 1.8% on QoQ Q1 inflation, while YoY is expected to remain at 7.2%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6206 at the time of writing. Pair opened at 0.629 and is trading with a change of -1.34 % .

The pair is trading below its 20 Daily moving average @ 0.6248, below its 50 Daily moving average @ 0.6239 , below its 100 Daily moving average @ 0.6304 and above its 200 Daily moving average @ 0.6161

The previous day high was 0.6316 while the previous day low was 0.6203. The daily 38.2% Fib levels comes at 0.6273, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6246, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6223, 0.6157, 0.611
• Pivot resistance is noted at 0.6336, 0.6383, 0.645

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