The New Zealand dollar shows a slight increase, developing a corrective momentum formed at the end of last week. The NZD/USD pair showed an active decline last Thursday, reacting to the growth of the US currency positions in almost the entire spectrum of the market.
The reason for the appearance of "bearish" dynamics was the results of the US Federal Reserve meeting: as expected, the regulator decided to raise the interest rate by 50 basis points after a fourfold increase in the rate by 75 basis points. At the same time, the Chair of the Fed, Jerome Powell, indicated that the value is likely to remain high for a longer time than originally estimated. In addition, the US Federal Reserve is determined to continue the fight against high consumer inflation, which, meanwhile, is demonstrating a steady downtrend. Last week's data showed the US Consumer Price Index falling to 7.1%, which, however, remains well above the 2.0% target.
Moderate pressure on the positions of the US currency on Friday, December 16, was exerted by macroeconomic data. The Services PMI from S&P Global in December corrected from 46.2 points to 44.4 points with a forecast of growth to 46.8 points, the Manufacturing PMI adjusted from 47.7 points to 46.2 points, while the market was counting on zero dynamics, and the Composite PMI corrected from 46.4 points to 44.6 points.
On the D1 chart, Bollinger Bands demonstrate a tendency to reverse into a horizontal plane. The price range is narrowing, reflecting the multidirectional dynamics appearance in the short term. MACD is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic is showing similar dynamics; however, the indicator line is rapidly approaching its lows, indicating the risks of New Zealand dollar being oversold 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.