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NZDUSD Corrective Dynamics During the Asian Session

2/24/2023 10:52 AM

The NZD/USD pair shows mixed trading, consolidating near 0.6230, returning to the opening levels of Monday, February 20. The main "bullish" factor for the New Zealand currency during the week was the decision of the Reserve Bank of New Zealand (RBNZ) to raise interest rates by 50 basis points to 4.75%, which coincided with analysts' forecasts and signaled a continuation of the policy of tightening monetary conditions. Regarding further plans, the regulator did not give any signals; however, analysts are positive about the prospects for new increases in value at the same or slower pace.

The minutes of the February meeting of the US Federal Reserve, released this week, also reflected the regulator's "hawkish" mood and readiness for new interest rate increases. In February, the Fed increased the figure by 25 basis points and the same decision is expected from the March meeting.

Today, traders will follow a block of macroeconomic statistics on the dynamics of personal Income and Spending of US households in January, where forecasts suggest an increase in Income from 0.2% to 0.9%, and Spending can rise from -0.2% to 1.3%; also, data on New Home Sales are expected: the indicator may accelerate from 2.3% to 2.5%. In addition, investors are counting on additional comments from the representatives of the US Federal Reserve, Philip Jefferson and Loretta Mester, who is the President of the Federal Reserve Bank (FRB) of Cleveland.

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD has reversed to growth having formed a new buy signal (located above the signal line). Stochastic is showing a similar trend, rebounding from the level of "20", which can be called the formal boundary of the oversold area.

Resistance levels: 0.6250, 0.6288, 0.6350, 0.6400. | Support levels: 0.6200, 0.6155, 0.6100, 0.6050.

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