NZD/USD extends its upside above 0.6150, China’s property support measures boost Kiwi

Source Fxstreet
May 28, 2024 01:59
  • NZD/USD trades in positive territory for the fifth consecutive day around 0.6165 on Tuesday. 
  • Investors will closely watch the US PCE, which is expected to show an increase of 2.8% YoY in April.
  • China's Shanghai has announced support measures to boost the housing market. 

The NZD/USD pair extends the rally near 0.6165 on Tuesday during the early Asian session. The pair edges higher to the highest level since March amid the softer US Dollar (USD). Investors await the fresh catalysts, with the US Gross Domestic Product Annualized (GDP) and Core Personal Consumption Expenditures Price Index due later this week. Also, the Reserve Bank of New Zealand’s (RBNX) Governor Orr's speech will be closely watched on Friday. 

The markets lower their bets on interest rate cuts by the US Federal Reserve (Fed) following the hawkish stance from Fed officials and stronger-than-expected US economic data. Investors will keep an eye on the key US PCE inflation data on Friday. The US Core PCE is projected to show an increase of 0.3% MoM and 2.8% YoY in April. The hotter inflation might dampen expectations of Fed rate cuts and boost the Greenback.

On the other hand, RBNZ Deputy Governor Christian Hawkesby highlighted that cutting interest rates is not part of the near-term discussion. The RBNZ held its cash rate steady at a 15-year high of 5.5% and suggested that restrictive policy needs to be maintained longer to ensure inflation returns to the 1-3% target range.

On Tuesday, China's Shanghai announced property sector support measures to optimize the local real estate market and promote stable and sound development, per the Global Times. Analysts believe it will offer a significant boost to the housing market. The combination of hawkish holds from the RBNZ and the Chinese stimulus plan continues to underpin the China-proxy Kiwi against the USD. 

NZD/USD

Overview
Today last price 0.6161
Today Daily Change 0.0014
Today Daily Change % 0.23
Today daily open 0.6147
 
Trends
Daily SMA20 0.6047
Daily SMA50 0.6004
Daily SMA100 0.6069
Daily SMA200 0.6044
 
Levels
Previous Daily High 0.6155
Previous Daily Low 0.6106
Previous Weekly High 0.6153
Previous Weekly Low 0.6083
Previous Monthly High 0.6079
Previous Monthly Low 0.5851
Daily Fibonacci 38.2% 0.6136
Daily Fibonacci 61.8% 0.6125
Daily Pivot Point S1 0.6117
Daily Pivot Point S2 0.6087
Daily Pivot Point S3 0.6068
Daily Pivot Point R1 0.6166
Daily Pivot Point R2 0.6185
Daily Pivot Point R3 0.6215

 

 

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