NZD/USD gains ground above 0.6100 following New Zealand CPI data

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  • NZD/USD holds positive ground above 0.6100 despite the firmer USD. 
  • The US Richmond Fed Manufacturing Index remained sluggish in January. 
  • New Zealand's Consumer Price Index (CPI) for Q4 arrived at 0.5% QoQ vs. 1.8% prior, in line with market expectations.

The NZD/USD pair hovers around the 0.6100 mark during the early Asian session on Wednesday. The New Zealand Dollar (NZD) initially edged higher overnight before dropping back as the US Dollar strengthened. Meanwhile, the US Dollar Index (DXY) has reached new yearly highs above 103.00 as the markets turn cautious ahead of key US economic data. At press time, NZD/USD is trading at 0.6100, gaining 0.20% on the day.

On Tuesday, the US Richmond Fed Manufacturing Index was weaker than expected in January, coming in at -15 from -11, marking its third consecutive negative reading. This reading was below the market consensus of -7.

The Federal Reserve’s (Fed) official stressed that the central bank should cut rates "methodically and carefully.” The markets expect the Fed to cut rates slower and less aggressively than previously anticipated. According to the CME FedWatch Tool, the odds of a March rate cut fell to 44.3% from an 81% chance last week.

On the Kiwi front, Statistics New Zealand showed that New Zealand's Consumer Price Index (CPI) arrived at 0.5% QoQ in the fourth quarter of 2023 from the previous quarter's 1.8%, in line with market expectations. On an annual basis, the CPI inflation figure came in at 4.7% YoY, compared to the previous reading of 5.6%. In response to the data, the NZD gains traction above the 0.6100 psychological mark.

Market players will keep an eye on the US preliminary S&P Global PMI report, due on Wednesday. Later this week, the US Gross Domestic Product Annualized (Q4) and Core Personal Consumption Expenditures Price Index (Core PCE) for December will be in the spotlight.

 

NZD/USD

Overview
Today last price 0.6102
Today Daily Change 0.0027
Today Daily Change % 0.44
Today daily open 0.6075
 
Trends
Daily SMA20 0.6227
Daily SMA50 0.6175
Daily SMA100 0.6043
Daily SMA200 0.6089
 
Levels
Previous Daily High 0.6139
Previous Daily Low 0.6073
Previous Weekly High 0.6249
Previous Weekly Low 0.6088
Previous Monthly High 0.641
Previous Monthly Low 0.6084
Daily Fibonacci 38.2% 0.6098
Daily Fibonacci 61.8% 0.6114
Daily Pivot Point S1 0.6052
Daily Pivot Point S2 0.603
Daily Pivot Point S3 0.5986
Daily Pivot Point R1 0.6118
Daily Pivot Point R2 0.6162
Daily Pivot Point R3 0.6184

 



 

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