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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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

Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media are

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.