NZD/USD rises toward 0.5950 amid subdued US Dollar, risk-on mood

Source Fxstreet
Apr 18, 2024 08:01
  • NZD/USD extends gains as the US Dollar faces challenges on subdued Treasury yields.
  • The latest inflation data from New Zealand offers the RBNZ greater flexibility to consider interest rate cuts.
  • Fed’s Mester acknowledged that the central bank needs additional assurance before confirming the sustainability of 2% inflation.

NZD/USD continues to gain ground for the second consecutive day, hovering around 0.5930 during the early European session on Thursday. The decline in the US Dollar (USD) contributes support for the NZD/USD pair, which could be attributed to the improved risk sentiment.

On Wednesday, the report indicated that New Zealand's Consumer Price Index (CPI) has hit a nearly 3-year low, registering at 4% year-over-year in the first quarter. This situation provides the Reserve Bank of New Zealand (RBNZ) with more flexibility to contemplate interest rate cuts. Despite acknowledging persistent inflation in specific sectors, the RBNZ opted to maintain interest rates at 5.5% during its policy meeting last week.

On the other side, Federal Reserve Bank of Cleveland President Loretta Mester acknowledged on Wednesday that inflation has exceeded expectations. Mester stressed that the Fed requires further assurance before confirming the sustainability of 2% inflation, as per a Reuters report.

In addition, US Federal Reserve (Fed) Chair Jerome Powell commented on Tuesday that recent data indicates limited progress in inflation this year, suggesting an extended period before reaching the 2% target. This statement potentially signals a hawkish sentiment surrounding the Fed’s upcoming policy decision, which could provide support for the US Dollar, consequently, limiting the advance of the NZD/USD pair.

On the data side, traders await the release of weekly Initial Jobless Claims and Existing Home Sales from the United States (US) on Thursday, which could provide further insight into the state of the US economy and potentially impact the direction of the Greenback.

NZD/USD

Overview
Today last price 0.593
Today Daily Change 0.0014
Today Daily Change % 0.24
Today daily open 0.5916
 
Trends
Daily SMA20 0.5985
Daily SMA50 0.6071
Daily SMA100 0.6129
Daily SMA200 0.606
 
Levels
Previous Daily High 0.5926
Previous Daily Low 0.586
Previous Weekly High 0.6079
Previous Weekly Low 0.5933
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.5901
Daily Fibonacci 61.8% 0.5885
Daily Pivot Point S1 0.5876
Daily Pivot Point S2 0.5835
Daily Pivot Point S3 0.581
Daily Pivot Point R1 0.5941
Daily Pivot Point R2 0.5966
Daily Pivot Point R3 0.6007

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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