- The NZD/USD has bounded back into the top end after broader markets went risk-on.
- Tuesday saw safe havens go broadly lower as investors stepped out post-US CPI.
- Up Next: US PPI, Retail Sales slated for Wednesday.
The NZD/USD has ripped higher after gaining almost 2.6% from Tuesday's lows. The Kiwi (NZD) saw its single best trading day against the US Dollar (USD) since July of this year as broad-market risk appetite roared back following a US Consumer Price Index (CPI) inflation reading that came in below expectations.
US inflation appears to be easing at a faster rate than market participants anticipated ahead of the US CPI print, and the decline in headline inflation sent the Greenback broadly lower across the board.
US CPI inflation softens to 3.2% vs. 3.3% forecast
Month-over-month headline US CPI in October printed at a flat 0.0%, coming in below the forecast 0.1% and dipping even further from the previous month's print of 0.4%.
With inflation measures falling past forecasts, investors are seeing hopes of the Federal Reserve (Fed) getting pushed off their "higher for longer" hawkish perch and will see an accelerated timeline for beginning the next rate cut cycle.
Forex Today: US inflation slows, Dollar tumbles
Next up on the economic calendar data docket will be US Producer Price Index (PPI) and Retail Sales numbers.
Core US PPI for the year into October is expected to print flat at 2.7%, in-line with September's annualized reading, while US MoM Retail Sales are forecast to see a sharp turnaround from September's 0.7% growth. Median market forecasts see October's monthly Retail Sales number printing at -0.3%.
NZD/USD Technical Outlook
Despite the Kiwi's firm bounce to reclaim the 0.6000 major handle on Tuesday, the NZD/USD remains under significant technical pressure. Price action continues to waffle below the 200-day Simple Moving Average (SMA) currently dropping into 0.6100, and the immediate ceiling on an bullish extension sits at early October's swing high into the 0.6050 level.
Swing lows on the daily candlesticks have begun to chalk out a technical support zone from 0.5800 to 0.5900, but the 50-day SMA continues to draw in bids, trapping prices into downside momentum near the 0.5900 handle.
NZD/USD Daily Chart
NZD/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.