Solid News
New Zealand Dollar Retains the Uptrend
1/12/2023 10:30 AMThe NZD/USD pair shows weak growth during the Asian session, testing 0.6375 for a breakout. Traders are in no hurry to open new positions, preferring to wait for the publication of macroeconomic statistics in the US.
Today, the release of December data on consumer inflation is expected, which will largely determine the future policy of the US Federal Reserve. As the regulator nears the end of its current rate hike cycle, the question now is whether the agency will decide to make two more 25 basis point adjustments this year, or limit itself to just one.
Some support for the instrument today was provided by data from China. The Consumer Price Index showed zero dynamics in December after falling by 0.2% in the previous month, and accelerated from 1.6% to 1.8% in annual terms. At the same time, the Producer Price Index corrected from -1.3% to -0.7%, which turned out to be worse than analysts' forecasts at the level of -0.1%. Either way, rising inflation points to a gradual recovery in the Chinese economy, which is still struggling to recover from the effects of the pandemic.
Bollinger Bands in D1 chart show moderate growth. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, having overcome the level of "80", reversed into a horizontal plane, indicating the risks of the development of a corrective decline in the New Zealand dollar in the ultra-short term.
Resistance levels: 0.6400, 0.6450, 0.6500, 0.6535. | Support levels: 0.6350, 0.6288, 0.6250, 0.6200.
