Fundamental Overview
The US Dollar’s bullish trend is slowing down, despite recent high US CPI and PPI reports. Market expectations for aggressive rate cuts have diminished, aligning closely with the Fed’s outlook.
More strong US economic data is needed for the market to anticipate an earlier halt in the Fed’s easing cycle, which could further support the US Dollar.
In the long term, US yields are likely to rise, maintaining the USD’s upward trend. However, more positive triggers are needed to strengthen confidence among buyers.
Significant risks are anticipated in November, with key data releases and the US election ahead.
For the NZD, the RBNZ cut interest rates by 50 bps as expected, and there’s an 88% chance of another similar cut next month.
NZDUSD Technical Analysis – Daily Timeframe
The daily chart shows NZDUSD consolidating around the key support level of 0.6050. Buyers may emerge here aiming for a rally towards the 0.6217 resistance, while sellers are looking for a drop below the support to target 0.5850.
NZDUSD Technical Analysis – 4 Hour Timeframe
The 4-hour chart highlights range-bound trading with the 0.61 level acting as resistance. A breakout above could see bullish momentum towards 0.6217.
NZDUSD Technical Analysis – 1 Hour Timeframe
The 1-hour chart shows limited insights; traders likely continue to range trade until a breakout occurs. Keep an eye on the New Zealand CPI report later today.
Upcoming Catalysts
This week has few data releases. Today, we’ll get New Zealand’s Q3 CPI report, and on Thursday, we’ll see US Retail Sales and Jobless Claims data.
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