NZD/USD trades with mild negative bias above the mid-0.6100s ahead of US CPI data


  • NZD/USD trades on a softer note near 0.6169 amid the modest rebound of USD on Tuesday.
  • Financial markets have priced in nearly 70% odds of a rate cut from the Fed in June.
  • The RBNZ softened its hawkish tone amid signs of easing inflation pressures.
  • The US February CPI inflation data will be in the spotlight on Tuesday.

The NZD/USD pair trades with a mild negative bias above the mid-0.6100s during the early Asian session on Tuesday. The modest recovery of the US Dollar (USD) weighs on the pair. Investors will closely watch US Consumer Price Index (CPI) inflation data for February, due later in the day. At press time, NZD/USD is trading at 0.6169, down 0.01% on the day.

The US February CPI data will be the highlight on Tuesday as investors will observe the degree of inflation persistence. The headline CPI figure is expected to remain steady at 3.1% YoY, while the Core CPI figure is estimated to ease to 3.7% YoY in February. The rising inflation is likely to delay the Federal Reserve’s (Fed) decision to lower the interest rate. This, in turn, might lift the Greenback and cap the upside of the NZD/USD pair.

On the other hand, if inflation eases as expected, it could convince the Fed to cut the fed funds rate in its June meeting, which might drag the USD lower against its rivals. According to the CME Group’s Fedwatch Tool, the expectations for a rate cut of at least 25 basis points (bps) at the June meeting are currently above 70%.

On the Kiwi front, the Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR) unchanged at 5.5% at its February meeting. However, the central bank softened its hawkish tone amid signs of easing inflation pressures. The RBNZ statement stated that core inflation and most measures of inflation expectations have declined, and the risks to the inflation outlook have become more balanced.

Moving on, market participants will watch the US February CPI data on Tuesday. Later this week, New Zealand’s Food Price Index will be due on Wednesday, and US Retail Sales will be released on Thursday. Traders will take cues from these events and find trading opportunities around the NZD/USD pair.

NZD/USD

Overview
Today last price 0.6169
Today Daily Change -0.0006
Today Daily Change % -0.10
Today daily open 0.6175
 
Trends
Daily SMA20 0.6135
Daily SMA50 0.6148
Daily SMA100 0.6109
Daily SMA200 0.6079
 
Levels
Previous Daily High 0.6218
Previous Daily Low 0.6161
Previous Weekly High 0.6218
Previous Weekly Low 0.6069
Previous Monthly High 0.6219
Previous Monthly Low 0.6037
Daily Fibonacci 38.2% 0.6196
Daily Fibonacci 61.8% 0.6183
Daily Pivot Point S1 0.6151
Daily Pivot Point S2 0.6128
Daily Pivot Point S3 0.6095
Daily Pivot Point R1 0.6208
Daily Pivot Point R2 0.6241
Daily Pivot Point R3 0.6265

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures