FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURAUD and EURJPY) for the day
FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURAUD and USDCAD) for the day
FxWirePro: NZD/USD slips lower from 2-month high, 'Doji' at highs dents upside
Chart - Courtesy Trading View
NZD/USD was trading largely unchanged at 0.6432 at around 10:15 GMT.
The major has slipped lower from fresh 2-month highs at 0.6468, but bias remains bullish.
Uncertainty over the next Fed rate hike amid easing odds of aggressive Fed tightening keeps the USD bulls on the defensive.
US CPI report on Wednesday revealed that consumer prices were unchanged in July. Further, US Producer Price Index unexpectedly fell in July for the first time in two years, suggesting that inflation may have peaked. This brought down future rate hike expectations.
Investors have trimmed bets for a 75 Fed rate hike at the September policy meeting. Markets now price in a 50 bps Fed rate hike at the September meeting.
Focus now on the release of the Michigan US Consumer Sentiment Index, due later during the day for impetus.
Support levels - 0.6428 (110-EMA), 0.6366 (5-DMA), 0.6311 (200H MA)
Resistance levels - 0.65, 0.6575 (June high), 0.6616 (200-DMA)
Summary: NZD/USD trades with a bullish technical bias. The pair is poised for further upside.
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