Fresh buying interest is seen in the NZDUSD pair at a level of 0.62324, leading to a surge in its value, reaching the highest level it has achieved in the past three weeks. This rise is primarily attributed to the continuous decline in the value of the USD.
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- NZD/USD catches fresh bids and touches a three-week high amid sustained USD selling.
The pair currently trades last at 0.62324.
The previous day high was 0.6225 while the previous day low was 0.6166. The daily 38.2% Fib levels comes at 0.6189, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6202, expected to provide support.
The NZD/USD pair regains positive traction following the previous day’s brief pause and climbs to over a three-week high during the Asian session on Wednesday. Spot prices, however, retreat around 10-15 pips after the Reserve Bank of New Zealand (RBNZ) announced its policy decision and currently trade above the 0.6200 mark, still up 0.20% for the day.
As was widely expected, the RBNZ left the official cash rate (OCR) unchanged at 5.50% following its July monetary policy meeting and noted that interest rates are constraining spending and inflation pressure as required. In the accompanying policy statement, the RBNZ noted that the OCR will need to remain at a restrictive level for the foreseeable future, to ensure that consumer price inflation returns to the 1 to 3% annual target range, while supporting maximum sustainable employment. In the absence of any hawkish surprise, the announcement does little to impress bullish traders or assist the NZD/USD pair to build on its modest intraday gains.
The downside, however, remains cushioned in the wake of the prevailing US Dollar (USD) selling bias. Fresh speculations that the Federal Reserve (Fed) is nearing the end of its rate-hiking cycle lead to a further pullback in the US Treasury bond yields and continue to weigh on the Greenback. Apart from this, a generally positive risk tone turns out to be another factor undermining the safe-haven buck and benefitting the risk-sensitive Kiwi. This, in turn, suggests that the path of least resistance for the NZD/USD pair is to the downside. Traders, however, might refrain from placing aggressive bets and prefer to wait for the latest US consumer inflation figures.
The crucial US CPI report is due for release later during the early North American session and might play a key role in influencing the Fed’s future rate-hike path. This, in turn, will drive the USD demand in the near term and help determine the next leg of a directional move for the NZD/USD pair. From a technical perspective, acceptance above the 100-day Simple Moving Average (SMA) adds credence to the positive outlook and supports prospects for a further near-term appreciating move for the major.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.6214 at the time of writing. Pair opened at 0.62 and is trading with a change of 0.23 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6214 |
| 1 | Today Daily Change | 0.0014 |
| 2 | Today Daily Change % | 0.2300 |
| 3 | Today daily open | 0.6200 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.617, 50 SMA 0.617, 100 SMA @ 0.6188 and 200 SMA @ 0.6179.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6170 |
| 1 | Daily SMA50 | 0.6170 |
| 2 | Daily SMA100 | 0.6188 |
| 3 | Daily SMA200 | 0.6179 |
The previous day high was 0.6225 while the previous day low was 0.6166. The daily 38.2% Fib levels comes at 0.6189, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6202, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.6169, 0.6138, 0.611
- Pivot resistance is noted at 0.6228, 0.6256, 0.6287
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6225 |
| Previous Daily Low | 0.6166 |
| Previous Weekly High | 0.6221 |
| Previous Weekly Low | 0.6124 |
| Previous Monthly High | 0.6250 |
| Previous Monthly Low | 0.5990 |
| Daily Fibonacci 38.2% | 0.6189 |
| Daily Fibonacci 61.8% | 0.6202 |
| Daily Pivot Point S1 | 0.6169 |
| Daily Pivot Point S2 | 0.6138 |
| Daily Pivot Point S3 | 0.6110 |
| Daily Pivot Point R1 | 0.6228 |
| Daily Pivot Point R2 | 0.6256 |
| Daily Pivot Point R3 | 0.6287 |
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