The NZDUSD pair remains in a range amid uncertainty, focusing on the upcoming US PPI release. Recently, the US CPI fell short of expectations, while the USD’s response has been mixed as markets await further insights from the PPI.
In New Zealand, there has been little new data. The RBNZ cut interest rates by 50 basis points but indicated a slower pace of easing, with a forecast of 65 basis points by year-end.
Technical Analysis Overview
Technical analysis shows NZDUSD ranging on the daily chart, with sellers targeting the 0.5850 level for potential drops, while buyers eye a break above this point. On the 4-hour chart, support exists around 0.5680, prompting buyers to prepare for a rally if the price pulls back.
The 1-hour chart indicates minor resistance at 0.5741, as sellers may target support below while buyers seek to break higher towards 0.5850. Key upcoming data includes US PPI and Jobless Claims, along with the University of Michigan Consumer Sentiment report.
With markets lacking conviction, traders continue to assess price movements ahead of upcoming data. The latest US inflation figures did not reach expectations, showing that pressures on prices may be easing. However, the dollar’s movement has remained uneven as traders wait for more details from the Producer Price Index to confirm the trend.
In contrast, economic updates from New Zealand have been sparse. Policymakers opted to lower interest rates by half a percentage point but suggested they will take a more measured approach in any further reductions. The current outlook points to a total of 65 basis points in cuts before the year concludes, showing a slower adjustment in policy.
Market Sentiment And Key Levels
Looking at charts, market participants have kept the NZDUSD pair moving sideways. Sellers maintain an active stance, closely watching whether the exchange rate will drift lower towards the 0.5850 mark. Meanwhile, those looking for upside momentum see a break above that level as a possible catalyst for the pair to climb further.
On shorter timeframes, traders remain watchful. The four-hour perspective places attention on 0.5680, where buying interest could emerge if price action pulls back. Should this level hold, it may invite attempts to push higher once again.
A closer inspection of the hourly outlook highlights 0.5741 as a spot where sellers may seek to reassert pressure. At the same time, those looking for upward movement are preparing for a potential move towards 0.5850 if momentum shifts in their favour.
With US inflation data already offering mixed signals, US PPI is likely to be closely analysed. Jobless claims data and the University of Michigan’s sentiment figures also carry weight, offering further clues on where market sentiment may lean in the days ahead.
