NZD/USD drops to 0.6110 on Kiwi Inflation, focus on US CPI data


  • NZD/USD loses ground as US Dollar improves ahead of US Inflation data.
  • RBNZ Inflation Expectations (Q1) increased by 2.5% against the 2.7% prior.
  • Annual US CPI and Core CPI could moderate to 2.9% and 3.7%, respectively.

The NZD/USD pair falls to near 0.6110 during the European trading session on Tuesday. The New Zealand Dollar (NZD) encounters pressure against the US Dollar (USD) is partially attributed to diminished Kiwi inflation expectations in the first quarter, as reflected in the RBNZ Inflation Expectations (QoQ) data, which rose by 2.5% but lower than the previous increase of 2.7%.

Economists at Commerzbank offer insights into the Kiwi's outlook, noting a significant decline in two-year inflation expectations to their lowest level since the third quarter of 2021. This places them just half a percentage point above the midpoint of the RBNZ's 1-3% inflation target range. However, given the prevailing trends in inflation and economic growth, it is deemed highly improbable for the RBNZ to raise rates again.

The US Dollar Index (DXY) maintains its upward trajectory for the second consecutive session, hovering around 104.10. However, the Greenback's ascent may be tempered by subdued US Treasury yields, with the 2-year and 10-year US yields at 4.47% and 4.17%, respectively, at present.

The NZD/USD pair receives downward pressure as traders exercise caution ahead of the release of United States (US) inflation data scheduled for Tuesday. Market experts anticipate the US Consumer Price Index (CPI) to moderate, with a year-on-year (YoY) increase of 2.9%, compared to the previous rise of 3.4%. The month-over-month rate is expected to stay consistent at 0.2%. Core CPI YoY could rise by 3.7%, down from the previous increase of 3.9%. The monthly core inflation is anticipated to be unchanged at 0.3%.

NZD/USD: additional important levels

Overview
Today last price 0.6109
Today Daily Change -0.0023
Today Daily Change % -0.38
Today daily open 0.6132
 
Trends
Daily SMA20 0.6108
Daily SMA50 0.6184
Daily SMA100 0.6072
Daily SMA200 0.6082
 
Levels
Previous Daily High 0.6153
Previous Daily Low 0.612
Previous Weekly High 0.6159
Previous Weekly Low 0.6037
Previous Monthly High 0.6339
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6133
Daily Fibonacci 61.8% 0.614
Daily Pivot Point S1 0.6117
Daily Pivot Point S2 0.6102
Daily Pivot Point S3 0.6084
Daily Pivot Point R1 0.615
Daily Pivot Point R2 0.6168
Daily Pivot Point R3 0.6183

 

 

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