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NZDUSD Instrument Consolidates Above 0.60

11/11/2022 11:41 AM

The New Zealand dollar shows mixed trading dynamics, testing strong resistance at 0.6000 for a breakout.

Noticeable support for the NZD/USD pair was provided by the October report on the dynamics of consumer prices in the US. As analysts expected, inflation began to decline: real data showed a slowdown in annual terms from 8.2% to 7.7%, and in monthly terms it was fixed at the same level of 0.4%, contrary to the forecast of 0.6%. Now the vast majority of investors are counting on the US Federal Reserve to raise interest rates at the December meeting by only 50 basis points.

The statistics released the day before from New Zealand had no noticeable effect on the market dynamics. The Business NZ PMI in October showed a decrease from 51.7 points to 49.3 points, while analysts' preliminary estimates suggested a moderate increase in the indicator to 52.7 points, and the Food Price Index for the same period accelerated from 0.4% to 0.8%, reflecting continuing inflationary risks, although experts believed that the indicator would slow down to zero dynamics.

Bollinger Bands in D1 chart show active growth. The price range is expanding but it fails to conform to the surge of "bullish" sentiments at the moment. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic, having retreated from its highs in the middle of the week, shows a horizontal direction, still signaling the risks of overbought New Zealand dollar in the ultra-short term.

Resistance levels: 0.6050, 0.6100, 0.6155, 0.6200. | Support levels: 0.6000, 0.5941, 0.5900, 0.5850.

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