Overview
The US Dollar’s strong performance may be slowing down, even after the US CPI and PPI reports came in higher than expected. The market has adjusted its expectations for rate cuts to align closely with the Fed’s plans.
More positive US economic data will be needed for the market to anticipate an earlier pause in the Fed’s easing, which could support the US Dollar further.
In the long run, US long-term yields are expected to rise, helping maintain the USD’s upward trend, but additional bullish triggers would boost buyer confidence.
Key events in November will include the October data release and the US elections.
For the NZD, the RBNZ recently cut interest rates by 50 bps, and there’s an 88% chance of another similar cut in November.
NZDUSD Technical Analysis – Daily
The daily chart shows NZDUSD is consolidating around the crucial 0.6050 support level, where buyers may enter, looking to rally towards 0.6217 resistance. Sellers will look for a drop below this support to target 0.5850 next.
NZDUSD Technical Analysis – 4 Hour
The 4-hour chart indicates a range-bound movement with bearish momentum fading. The 0.61 level acts as resistance; a break above could strengthen bullish momentum towards 0.6217 resistance.
NZDUSD Technical Analysis – 1 Hour
The 1-hour chart shows limited information; traders may continue to range trade until a breakout occurs. Watch for the New Zealand CPI data later today, with the red lines showing the average daily range.
Upcoming Catalysts
This week has few economic releases, but today features the New Zealand Q3 CPI report, followed by US Retail Sales and Jobless Claims data on Thursday.
