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NZDUSD Market Analysis

12/13/2022 10:56 AM

During the Asian session, the NZD/USD pair is growing slightly, recovering from a moderate decline yesterday, when quotes interrupted a three-day rally and retreated from local highs from December 5.

Traders are acting cautiously ahead of the publication of the results of the meetings of the world's central banks, which are likely to go to the next tightening of monetary stimulus. Today, a two-day meeting of the US Federal Reserve begins, and on Thursday, the European Central Bank (ECB) and the Bank of England will present their decisions on interest rates. In all cases, an increase of 50.0 basis points is expected, but the prospects of each of the regulators remain unclear.

Also, on Tuesday, investors are waiting for the publication of US November statistics on consumer inflation, which can largely determine the tone of comments by the head of the US Federal Reserve, Jerome Powell.

At the beginning of the week, noticeable pressure on the position of the New Zealand dollar came from news from China, where the authorities reported a sharp increase in cases of COVID-19: on Sunday, more than 22.0K people turned to medical institutions in Beijing, which is 16 times more than a week ago. Recall that the leadership of the PRC is trying to move away from the policy of "zero tolerance" after the mass protests in the country.

On the daily chart, Bollinger bands are growing moderately: the price range expands, letting the "bulls" renew local highs. The MACD indicator falls, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic, on the contrary, maintains a confident upward direction and practically does not react to yesterday's appearance of the "bearish" dynamics.

Resistance levels: 0.6400, 0.6450, 0.6500, 0.6535. | Support levels: 0.6350, 0.6288, 0.6250, 0.6200.

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