Summary
The US Dollar’s upward trend is slowing. Despite strong US economic data, GBPUSD hasn’t dropped to a new low. Retail sales and jobless claims exceeded expectations. However, market expectations regarding rate cuts have stabilized in line with the Federal Reserve’s outlook. To trigger a shift in these views, stronger US data, especially regarding inflation, is needed.
Upcoming risks include the October economic data, the FOMC policy decision, and the US elections in November.
For NZD, the Q3 CPI data fell short of expectations, increasing the likelihood of a 50 basis point rate cut in the next meeting and raising the chance of a 75 basis point cut to 12%.
NZDUSD Technical Analysis – Daily
On the daily chart, NZDUSD is holding around the key support level of 0.6050. Buyers may enter here while sellers will look for a drop below to aim for the next support at 0.5850.
NZDUSD Technical Analysis – 4 Hour
The 4-hour chart shows limited price movement. Resistance is set at 0.61, and a breakout above this level could boost buying momentum toward the 0.6217 resistance point.
NZDUSD Technical Analysis – 1 Hour
The 1-hour chart suggests that traders may continue to trade within a range until a breakout occurs. The red lines indicate today’s average daily range.
