#NZDUSD @ 0.61700 -imp levels: has sensed selling pressure around 0.6180 on an expectation of hawkish guidance by the Fed.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• NZD/USD has sensed selling pressure around 0.6180 on an expectation of hawkish guidance by the Fed.
• Fed could slow down the pace of hiking interest rates to safeguard US economic activities.
• Kiwi investors will focus on PBOC’s interest rate policy and Retail Sales data.

The pair currently trades last at 0.61700.

The previous day high was 0.6305 while the previous day low was 0.6165. The daily 38.2% Fib levels comes at 0.6218, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6251, expected to provide resistance.

The NZD/USD pair is hovering around 0.6176 at open and is building a base for further downside ahead. The asset displayed a five-day losing streak earlier after printing a fresh two-month high of 0.6469. The major is expected to extend its downside after violating Friday’s low at 0.6165 and will continue the losing spell as the US dollar index (DXY) will hog the limelight ahead of Jackson Hole Symposium.

As per the minutes from the Federal Reserve (Fed)’s July monetary policy, the Fed could slow down the pace of hiking interest rates in order to safeguard the economic activities in the US from the consequences of squeezing liquidity. A decline in the availability of cheap money in the economy will force the credit availing community to stick to ultra-filtered investment opportunities only.

On the kiwi front, a spree of hiking the Official Cash Rate (OCR) by the Reserve Bank of New Zealand (RBNZ) has failed to support the antipodean. The RBNZ elevated the OCR by 50 basis points (bps) fourth time in a row to 3% and is seeing the OCR to 4%. RBNZ Governor Adrian Orr is keeping on escalating the critical rates to fight the ramping inflation.

This week, the NZ Retail Sales data will be of utmost importance. Earlier, the economic data landed at -0.5%. Price pressures still persist in the kiwi economy and over that a decline in the economic data will put the kiwi dollar on the tenterhooks.

In today’s session, investors will keep an eye on the interest rate decision by the People’s Bank of China (PBOC). Currently, the one-year Prime Lending Rate (PLR) is at 3.7% while the five-year PLR is at 4.45%. A dovish stance by the PBOC on lending rates will strengthen the kiwi bulls. It is worth noting that NZ is a leading trading partner to China. Therefore, a loose monetary policy by the PBOC will support the antipodean.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6175 at the time of writing. Pair opened at 0.6213 and is trading with a change of -0.61 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6299, 50 SMA 0.6258, 100 SMA @ 0.6409 and 200 SMA @ 0.6602.

The previous day high was 0.6305 while the previous day low was 0.6165. The daily 38.2% Fib levels comes at 0.6218, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6251, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.615, 0.6088, 0.6011
• Pivot resistance is noted at 0.629, 0.6368, 0.643

[/s2If]
Join Our Telegram Group