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NZDUSD Stabilization Near local Highs

8/11/2022 12:06 PM

During the Asian session, the NZD/USD pair is holding near 0.6400 and is near the local highs since June 10, renewed yesterday.

The reason for the sharp increase in quotes on Wednesday, August 10, was the publication in the United States of July statistics on consumer inflation: the indicator receded from its June peak of 9.1% to 8.5% YoY, which was even lower than expected values ​​of 8.7%, and consolidated at 0.0% MoM, while the market expected a poor growth of 0.2%. The pressure on the US dollar was exerted by the published monthly report on the state of the budget from the US Federal Reserve: July data indicated a sharp increase in its deficit from 89.0B dollars to 211.0B dollars, which was worse than market expectations for growth to only 194.0B dollars.

Statistics from New Zealand, which appeared on Thursday, did not provide significant support to the instrument, but a noticeable increase in the number of tourist arrivals in June by 83.5% should be noted, while analysts expected only 14.8%. The easing of quarantine restrictions allows us to expect the New Zealand economy to receive significantly more income from tourism activities than a year ago.

On the daily chart, Bollinger bands are growing moderately: the price range is expanding, but it has not kept up with the activity of the “bulls” in the ultra-short term. The MACD indicator is growing, keeping a relatively strong buy signal (the histogram is above the signal line). Stochastic remains in an upward direction but is close to its highs, indicating that the New Zealand dollar may become overbought in the ultra-short term.

Resistance levels: 0.6400, 0.6433, 0.6500, 0.6535. | Support levels: 0.6350, 0.6300, 0.6200, 0.6146.

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