NZD/USD posts small losses below 0.6600

US Dollar Index stays in consolidation phase above 97.50.
US Pres. Trump criticizes Federal Reserve's monetary policy.
Coming up on Thursday: Fourth-quarter inflation report from New Zealand.

Eren Sengezer FXStreet

The NZD/USD pair struggles to stage a technical recovery and trades below the 0.6600 handle on Wednesday. As of writing, the pair was down 0.05% on the day at 0.6592.

The lack of significant macroeconomic data releases during the first half of the week allows major currency pairs to stay relatively quiet. During an interview on the sidelines of the World Economic Forum in Davos on Wednesday, US President Trump, once again, criticized the Federal Reserve's monetary policy.

The GDP would be near 4% in 2019 if it weren't for the Fed's wrong decisions on interest rates, Trump argued. Nevertheless, the greenback largely ignored Trump's comments and continues to move sideways above 97.50 for the third straight day.

Eyes on New Zealand inflation

In the early trading hours of the Asian session on Thursday, Statistics New Zealand will release the Consumer Price Index (CPI) data for the fourth quarter, which is expected to rise to 1.8% on a yearly basis from 1.5%.

Previewing the data, "we expect a 0.4% rise in the Consumers Price Index (CPI) for the December quarter, with annual inflation lifting to 1.8%," said Westpac analyst Michael Gordon. "Our forecast is higher than the Reserve Bank’s estimate, though the difference is on the more transitory tradables side of the CPI."

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6591
Today Daily Change	-0.0003
Today Daily Change %	-0.05
Today daily open	0.6594

Trends
Daily SMA20	0.6654
Daily SMA50	0.6564
Daily SMA100	0.6454
Daily SMA200	0.6513

Levels
Previous Daily High	0.6619
Previous Daily Low	0.6587
Previous Weekly High	0.6666
Previous Weekly Low	0.6584
Previous Monthly High	0.6756
Previous Monthly Low	0.6424
Daily Fibonacci 38.2%	0.6599
Daily Fibonacci 61.8%	0.6607
Daily Pivot Point S1	0.6581
Daily Pivot Point S2	0.6568
Daily Pivot Point S3	0.6549
Daily Pivot Point R1	0.6613
Daily Pivot Point R2	0.6632
Daily Pivot Point R3	0.6645

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.