With significant events approaching, the NZDUSD at 0.61995 is observing the Australian dollar to gain insights.
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- NZD/USD looks to the Aussie for clues ahead of key events.
The pair currently trades last at 0.61995.
The previous day high was 0.625 while the previous day low was 0.6209. The daily 38.2% Fib levels comes at 0.6225, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6235, expected to provide resistance.
The New Zealand Dollar fell to a low of 0./6101 on Monday and is currently down by 0.5% to 0.6200 after hitting a three-week top last week.
Markets are looking to a slew of domestic economic data this week, including New Zealand’s trade balance for May and Reserve Bank of Australia minutes.
The US Dollar moved higher last week and on Monday following a number of monetary policy decisions by central banks. In this regard, Federal Reserve Chair Powell will present the Semiannual Policy Report to Congress. He is expected to reiterate that the Committee is likely leaning toward higher policy rates this year.
”Note that despite that message the FOMC decided to pause rate hikes in June, and we are of the view that it will be unlikely they lift them again under a context of easing inflation in Jun-Aug,” analysts at TD Securities said.
The dollar index, DXY, which measures the U.S. currency against six major counterparts, ticked up 0.3% to 102.55, sitting just shy of a one-month low of 102.00 it touched on Friday.
AUD has been a top performer, helping to support the Kiwi. The Reserve Bank of Australia’s recent surprise rate hikes have helped to bolster the Antipodeans. Additionally, the release of a stellar Australian jobs report is also suggestive of further policy moves that can help lead the Bird higher.
In regards to the RBA, the minutes will be released this week and analysts at TD Securities explained that, ”in the June statement, the Bank dropped “medium-term inflation expectations remains well anchored” which read hawkish to us, and we can expect a lively discussion. Mentions of the impact of the 5+% minimum wage hike on the wage outlook will be closely watched as the recent strong job gains nudges the odds higher of another hike in Jul due to the risk of elevated wage pressures.”
As for the Reserve Bank of New Zealand, the central bank ”has been a strong advocate of front loading rate hikes and was the very first G10 central bank to begin its rate hiking cycle,” analysts at Rabobank added. ”Bad weather and teachers strikes have recently added to the impact of tighter credit conditions.”
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.62 at the time of writing. Pair opened at 0.6211 and is trading with a change of -0.18 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6200 |
| 1 | Today Daily Change | -0.0011 |
| 2 | Today Daily Change % | -0.1800 |
| 3 | Today daily open | 0.6211 |
The pair is trading above its 20 Daily moving average @ 0.6118, above its 50 Daily moving average @ 0.6178 , below its 100 Daily moving average @ 0.6218 and above its 200 Daily moving average @ 0.6152
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6118 |
| 1 | Daily SMA50 | 0.6178 |
| 2 | Daily SMA100 | 0.6218 |
| 3 | Daily SMA200 | 0.6152 |
The previous day high was 0.625 while the previous day low was 0.6209. The daily 38.2% Fib levels comes at 0.6225, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6235, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6196, 0.6182, 0.6155
- Pivot resistance is noted at 0.6238, 0.6265, 0.628
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6250 |
| Previous Daily Low | 0.6209 |
| Previous Weekly High | 0.6250 |
| Previous Weekly Low | 0.6076 |
| Previous Monthly High | 0.6385 |
| Previous Monthly Low | 0.5985 |
| Daily Fibonacci 38.2% | 0.6225 |
| Daily Fibonacci 61.8% | 0.6235 |
| Daily Pivot Point S1 | 0.6196 |
| Daily Pivot Point S2 | 0.6182 |
| Daily Pivot Point S3 | 0.6155 |
| Daily Pivot Point R1 | 0.6238 |
| Daily Pivot Point R2 | 0.6265 |
| Daily Pivot Point R3 | 0.6280 |
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