NZDUSD Technical Analysis | Forexlive

USD

• The Fed left interest rates unchanged as
  expected while dropping the tightening bias in the statement but adding a
  slight pushback against a March rate
  cut.
• Fed Chair Powell stressed
  that they want to see more evidence of inflation falling back to target and
  that a rate cut in March is not their base case.
• The latest US GDP beat
  expectations by a big margin.
• The US CPI beat
  expectations for the second consecutive month with the disinflationary trend
  reversing.
• The US NFP report
  beat expectations across the board by a big margin.
• The ISM Manufacturing
  PMI
  surprised to the upside with the new orders index, which is considered a
  leading indicator, jumping back into expansion. Similarly, the ISM Services PMI beat
  expectations across the board with the employment sub-index erasing the prior
  drop and prices paid jumping above 60.
• The US Consumer
  Confidence report came in line with expectations but
  the labour market details improved considerably.
• The market now expects the first rate cut in June.

NZD

• The RBNZ kept its official cash rate
  unchanged at the
  last meeting stating that demand growth continues to ease and it’s expected to
  decline further with monetary conditions remaining restrictive.
• The New Zealand inflation data printed in line with expectations
  supporting the RBNZ’s patient stance.
• The labour market report beat expectations across the
  board with lower unemployment rate and higher wage growth.
• The Manufacturing PMI fell further into contraction with
  the Services PMI following suit.
• The market expects the RBNZ to start
  cutting rates in Q2.

NZDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that NZDUSD fell
back into the key support zone
around the 0.6050 level following the hot US CPI report. We continue to have a
rangebound price action between the 0.6050 support and the 0.6150 resistance.
The buyers will likely step in here with a defined risk below the support to
position for a rally back into the resistance. The sellers, on the other hand,
will want to see the price breaking lower to increase the bearish bets into the
0.59 handle.

NZDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that in case the
bearish momentum remains strong today as well, we should see the sellers
stepping in around the 0.6080 level where we have also the blue 8 moving average for confluence. In case
the price continues higher though, we can expect the buyers to increase the
bullish bets into the 0.6150 resistance.

NZDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action and the bounce right around the 0.6050 level.
Moreover, we can see that we now have a downward trendline where
the sellers could step in in case the price breaks above the 0.6080 level and
continues higher. The buyers, on the other hand, will want to see the price
breaking above the trendline as well to increase further the bullish bets into
the resistance.

Upcoming Events

Tomorrow we will see latest US Jobless Claims figures,
the US Retail Sales, and the New Zealand Manufacturing PMI. On Friday, we
conclude the week with the US PPI and the University of Michigan Consumer
Sentiment survey.