Kiwi Dollar Remains Vulnerable Despite Better Than Expected CPI News

FXOpen

The New Zealand Dollar (NZD) fell against the American counterpart in Asia on Friday, dragging the price of NZD/USD pair to less than 0.6830 despite the release of better than expected CPI figure for New Zealand which shows inflation staying near the 16-year low. The technical bias already remains bullish because of a Higher High and Higher Low in the ongoing move.

Technical Analysis

As of this writing, the pair is being traded around 0.6827. A hurdle may be noted near 0.6897-0.6900 which is the confluence of psychological number as well as swing high of the last major upside move on the four-hour timeframe. A break and four-hour closing above the 0.6900 territory could incite renewed buying interest, validating a move above the 0.7000 zone.

Kiwi Dollar Remains Vulnerable Despite Better Than Expected CPI News

On the downside, the pair is likely to find a support around 0.6757, the 50% fib level ahead of 0.6618, the swing low of the last major downside move as demonstrated in the above chart. The technical bias will remain bullish as long as the 0.6618 support area is intact.

Kiwi Inflation

The Statistics New Zealand said the consumer price index (CPI) rose 0.4 per cent in the year to September 30, the same increase as the year to June 30.

The CPI is the recognised measure of general household inflation, using changes in pricing of a theoretical basket of goods bought by households.

A fall in petrol prices and a large increase in council rates has seen inflation stay anchored near a 16 year low in the year to September.

Trade Idea

Considering the overall technical and fundamental outlook, selling the Kiwi dollar around current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead? Market Analysis: AUD/USD and NZD/USD Sight Steady Increase European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • Nasdaq 100 Index Reaches
Analytical META Stock Predictions for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical META Stock Predictions for 2024, 2025-2030, and Beyond

Meta Platforms, Inc., formerly known as Facebook, is a leading technology company renowned for its social media and virtual reality innovations. This article provides a detailed analysis of Meta's stock performance, future analytical projections for 2024 to 2030, and the

Commodities

Natural Gas Price: Bullish Trend Weakens

Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning.

Specifically:
→ The XNG/USD chart indicates that from 1st April

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.