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The NZDUSD is Preparing to End the Week Near Zero

2/3/2023 11:12 AM

The NZD/USD pair shows multidirectional trading dynamics, consolidating near 0.6470 and waiting for new drivers to emerge on the market. The day before, the instrument showed a fairly active decline, retreating from its June highs, which was the market's reaction to the corrective growth of the US currency, which was recovering after the decision of the US Federal Reserve to raise interest rates by 25 basis points. At the same time, the Chair of the Fed, Jerome Powell, pointed to the beginning of a reversal in the trend in inflation growth, which many analysts perceived as a "dovish" signal. At the same time, the regulator signaled in favor of a further increase in the cost of borrowing at a moderate pace, given the stable state of the labor market and the economy as a whole.

In addition, the US dollar was supported by statistics on jobless claims: the number of Initial Jobless Claims for the week ended January 27 decreased from 186.0 thousand to 183.0 thousand, while analysts expected 200.0 thousand, and Continuing Jobless Claims for the week ended January 20 decreased from 1.666 million to 1.655 million, which also turned out to be better than forecasts at the level of 1.677 million. Investors are focused on the January statistics on the US labor market today. Among other things, analysts expect a slowdown in the growth in the Nonfarm Payrolls from 223.0 thousand to 185.0 thousand. In turn, the Unemployment Rate may correct from 3.5% to 3.6%. Also, statistics from the Institute of Supply Management (ISM) and S&P on business activity in the US in January are expected to be published during the day.

On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic retains its upward direction and practically does not react to the resumption of the "bearish" trend at the end of the current week.

Resistance levels: 0.6500, 0.6535, 0.6600, 0.6650. | Support levels: 0.6450, 0.6400, 0.6350, 0.6288.

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