During the early Asian session on Monday, the NZDUSD currency pair remains in a tight trading range around the level of 0.60980.

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• NZD/USD consolidates in a narrow trading band through the early Asian session on Monday.

The pair currently trades last at 0.60980.

The previous day high was 0.6133 while the previous day low was 0.607. The daily 38.2% Fib levels comes at 0.6109, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6094, expected to provide support.

The NZD/USD pair oscillates in a narrow range below the 0.6100 mark during the early Asian session on Monday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, faces some follow-through selling and currently trades near 102.05.

The US Dollar fell following the mixed employment data on Friday. The US Bureau of Labor Statistics (BLS) reported on Friday that the Nonfarm Payrolls in the US rose by 187,000 in July, weaker than the market expectation of 200,000. The June figures were revised lower to 185,000, the lowest reading since December 2020.

Additionally, the unemployment rate fell to 3.5% from 3.6%, while annual wage inflation, as measured by changes in Average Hourly Earnings, came in at 4.4%, higher than the market estimation of 4.2%. Finally, the Labour Force Participation remained unchanged at 62.6%.

Atlanta Federal Reserve Bank President Raphael Bostic told Bloomberg on Friday that the central bank is likely to maintain tightening monetary policy far beyond 2024. According to the CME FedWatch tool, the probability of a 25 basis point (bps) hike in September remains steady, but the odds of a hike in November have increased slightly to approximately 30%.

On the Kiwi front, no top-tier economic data was released on Friday. However, Statistics New Zealand reported on Wednesday that the New Zealand Unemployment Rate for Q2 came in at 3.6%, above the consensus of 3.5% and 3.4% prior. Employment Change QoQ rose 1.0%, better than expected at 0.5% and 0.8% previously.

Looking ahead, market participants will watch the US Consumer Price Index (CPI) for July, which is due on Thursday. Market expectations anticipate a 0.2% monthly increase. Also, the US Produce Price Index (PPI) will be released on Friday. The inflation data could significantly impact the US Dollar’s dynamic and give the NZD/USD pair a clear direction.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6095 at the time of writing. Pair opened at 0.6084 and is trading with a change of 0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6215, 50 SMA 0.6165, 100 SMA @ 0.6193 and 200 SMA @ 0.6228.

The previous day high was 0.6133 while the previous day low was 0.607. The daily 38.2% Fib levels comes at 0.6109, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6094, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6058, 0.6033, 0.5995
• Pivot resistance is noted at 0.6122, 0.6159, 0.6185

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