• Mon. May 20th, 2024

NZD/USD edges higher to near 0.6240, Kiwi Building permits, US CPI eyed

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  • NZD/USD faced a challenge as the risk-on mood shifted to risk aversion.
  • Traders await November’s Kiwi Building Permits followed by the Chinese CPI and PPI.
  • US Dollar remains calm amid directionless US Treasury yields.

NZD/USD attempts to recover the recent losses registered on Tuesday, trading slightly higher near 0.6240 during the Asian session on Wednesday. The New Zealand Dollar (NZD) registered losses against the US Dollar in the previous session as the risk-on sentiment shifted to risk aversion. Traders are now looking ahead to Thursday’s release of November’s Building Permits data from New Zealand, following a reported 8.7% rise in October.

The improved Kiwi Consumer Confidence and Business Confidence figures for November bolstered the sentiment that the Reserve Bank of New Zealand (RBNZ) will maintain a hawkish stance by refraining from policy easing in the upcoming meeting, contributed to a positive outlook for the New Zealand Dollar.

Additionally, Friday’s Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) figures will likely attract attention, considering the close business ties between China and New Zealand.

The US Dollar Index (DXY) holds its position near 102.50 after recent gains, attempting to extend its profits amid directionless US Treasury yields. At the time of writing, the 2-year and 10-year yields on US bond coupons mark at 4.35% and 4.01%, respectively. The Greenback could cheer if the risk aversion sentiment improves further ahead of December’s Consumer Price Index (CPI) data from the United States to be released on Thursday.

Investors eagerly seek cues from the Federal Reserve’s mood regarding the interest rate trajectory. While elevated interest rates may put pressure on aggregate demand, leading to subdued growth and a softer labor market, the Fed is expected to refrain from any rate cuts in its upcoming January policy meeting.

NZD/USD: MORE LEVELS TO WATCH

OVERVIEW
Today last price 0.6242
Today Daily Change 0.0004
Today Daily Change % 0.06
Today daily open 0.6238
TRENDS
Daily SMA20 0.6267
Daily SMA50 0.613
Daily SMA100 0.6023
Daily SMA200 0.6093
LEVELS
Previous Daily High 0.6268
Previous Daily Low 0.6223
Previous Weekly High 0.6339
Previous Weekly Low 0.6181
Previous Monthly High 0.641
Previous Monthly Low 0.6084
Daily Fibonacci 38.2% 0.624
Daily Fibonacci 61.8% 0.6251
Daily Pivot Point S1 0.6218
Daily Pivot Point S2 0.6198
Daily Pivot Point S3 0.6173
Daily Pivot Point R1 0.6263
Daily Pivot Point R2 0.6288
Daily Pivot Point R3 0.6308
On Key

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