New Zealand Dollar moves below 0.6150 ahead of Fed's Beige Book

Source Fxstreet
May 29, 2024 10:06
  • NZD/USD extends losses as Fed’s Neel Kashkari stated that a rate hike might still be possible.
  • The higher US Treasury yields contributed support for the US Dollar.
  • ANZ Business Confidence Index fell to 11.2 in May, marking the lowest reading since last September.

NZD/USD extended losses for the second successive session, trading around 0.6140 during the European hours on Wednesday. The US Dollar (USD) gained ground against the New Zealand Dollar (NZD) after the emergence of the risk aversion sentiment, which could be attributed to the hawkish comments from the Minneapolis Fed President Neel Kashkari during an event in London on Tuesday. As per an MSN report, Kashkari stated “I don’t think anybody has totally taken rate increases off the table.” And suggested that a rate hike might still be possible.

The gains in the US Treasury yields also supported the Greenback. The US Dollar Index (DXY), which measures the USD against six major currencies, trades higher around 104.70, with 2-year and 10-year US Treasury yields at 4.95% and 4.54%, respectively, at the time of writing.

Moreover, the mid-tier US Housing Price Index (MoM) for March was underperforming, with March's number coming in at 0.1% against 1.2% for February, where 0.5% was expected. On Wednesday, the Fed's Beige Book will be released, providing an overview of the current US economic situation based on interviews with key business contacts, economists, market experts, and other sources from the 12 Federal Reserve Districts.

On Kiwi’s front, the ANZ Business Confidence Index fell to 11.2 in May from the previous reading of 14.9, marking the fourth consecutive month of decline and the lowest reading since last September.

The Reserve Bank of New Zealand (RBNZ) has revised its forecast, raising the expected peak in interest rates and delaying the anticipated timing for a rate cut. Traders will closely watch the Yearly New Zealand Budget Release from the New Zealand Treasury on Thursday. Additionally, a highly anticipated speech by RBNZ Governor Adrian Orr is scheduled for Friday.

NZD/USD

Overview
Today last price 0.6138
Today Daily Change -0.0003
Today Daily Change % -0.05
Today daily open 0.6141
 
Trends
Daily SMA20 0.606
Daily SMA50 0.6006
Daily SMA100 0.6068
Daily SMA200 0.6045
 
Levels
Previous Daily High 0.6171
Previous Daily Low 0.6137
Previous Weekly High 0.6153
Previous Weekly Low 0.6083
Previous Monthly High 0.6079
Previous Monthly Low 0.5851
Daily Fibonacci 38.2% 0.615
Daily Fibonacci 61.8% 0.6158
Daily Pivot Point S1 0.6128
Daily Pivot Point S2 0.6116
Daily Pivot Point S3 0.6094
Daily Pivot Point R1 0.6162
Daily Pivot Point R2 0.6184
Daily Pivot Point R3 0.6196

 

 

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