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NZD/USD approaches 0.6150 area again amid dollar weakness

  • NZD/USD moves higher on Monday amid fresh selling around the USD.
  • A positive risk tone keeps the USD under pressure near the monthly low.
  • Recession fears could cap the risk-sensitive NZD ahead of Tuesday’s US CPI release.

The pair NZD/USD attracts some buying near the 0.6080 region on Monday and rises to a new daily high at the start of the European session. The pair is currently hovering around the 0.6150 areaclose to the one-week highs reached last Friday.

The US dollar struggling to gain significant traction and weakening near the monthly low, which in turn is seen as a key factor lending some support to the NZD/USD pair. the markets already they seem to have priced in a 75 basis point rate hike at the next policy meeting from the FOMC on September 20-21. Apart of this, risk-positive tone continues to weigh on safe-haven USD, benefiting NZDrisk sensitive.

Nevertheless, upside potential seems limited amid concerns about a deeper global economic downturn. The prospect of rapid interest rate hikes, coupled with headwinds from new outbreaks of COVID-19 in China and the protracted war between Russia and Ukraine, have fueled recession fears. This could curb any bullish moves in the markets and act as a headwind for the NZD/USD pair, warranting caution for the bulls.

Furthermore, investors might prefer to stay on the sidelines and wait for the release of the latest consumer inflation figures in the US on Tuesday. The crucial US CPI report will play a key role in influencing the Fed’s monetary policy outlook and boosting the dollar in the near term. This, in turn, should provide a further directional boost to the NZD/USD pair.

Meanwhile, the pair looks more likely to range in the absence of market-relevant economic releases on Monday. That being said, broader market risk sentiment could drive USD price dynamics and allow investors to take advantage of some short-term opportunities around the NZD/USD pair.

NZD/USD technical levels

NZD/USD

Panorama
Last Price Today 0.615
Today’s Daily Change 0.0044
Today’s Daily Change % 0.72
Today’s Daily Opening 0.6106
Trends
20 Daily SMA 0.617
50 Daily SMA 0.6212
100 Daily SMA 0.6303
200 Daily SMA 0.6543
levels
Previous Daily High 0.6153
Previous Daily Minimum 0.6046
Previous Maximum Weekly 0.6153
Previous Weekly Minimum 0.5996
Monthly Prior Maximum 0.647
Previous Monthly Minimum 0.6101
Daily Fibonacci 38.2% 0.6112
Daily Fibonacci 61.8% 0.6086
Daily Pivot Point S1 0.605
Daily Pivot Point S2 0.5994
Daily Pivot Point S3 0.5943
Daily Pivot Point R1 0.6158
Daily Pivot Point R2 0.6209
Daily Pivot Point R3 0.6265

Source: Fx Street

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