Against the sharp weakening of the American currency, the NZD/USD pair shows a local increase near 0.6206.
Macroeconomic statistics contributed to positive dynamics: food prices in February rose by 1.5%, seasonally adjusted amounting to 2.1%. Most of all, fruits and vegetables rose in price, by 5.6%, soft drinks – by 1.6%, meat and poultry – by 0.6%. In turn, the report on the tourism sector recorded an increase in the number of foreign travelers who arrived in the country in January to 265.4K, which is 261.4K more than in the same month in 2022.
Meanwhile, the US dollar is falling, trading at 103.100 in the USD Index. The reaction of investors to the bankruptcy of two large US banks, Silicon Valley Bank and Signature Bank, was expressed by the withdrawal of assets and their redirection to safe-haven currencies, although yesterday, President Joe Biden announced the stability of the national financial system, and the US Federal Reserve announced an emergency program Bank Term Funding Program (BTFP). Also, analysts are focusing on the prospects for the current monetary policy in the new environment. So, former Assistant Secretary of the Treasury, Paul Craig Roberts, said that the US Federal Reserve now has two options: to lower the interest rate, which will lead to higher inflation or to turn to money emission, which, in turn, will become a catalyst for reducing the value of the national currency, and both of these scenarios are negative for the country's economy.
The trading instrument is correcting, forming a global Head and shoulders reversal pattern.
Technical indicators maintain a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO histogram forms corrective bars in the sell zone.
Support levels: 0.6156, 0.6000. | Resistance levels: 0.6265, 0.6400.