- The NZD / USD hovers around 0.7100, waiting for a new catalyst.
- New Zealand Prime Minister Ardern will reassess alert levels on September 20.
- Market sentiment is bullish, although not underpinning the NZD / USD.
- US CPI expected at 0.4%, excluding energy and food forecast at 0.3%.
The NZD / USD it remains stable on the session, trading around 0.7120, up 0.17% at the time of writing. During the Asian session, the pair fell to 0.7097, then recovered and touched 0.7100.
The main European and US stock indices are on the rise, with the exception of the Nasdaq, which is falling slightly.
New Zealand Prime Minister Ardern to reassess covid alert levels later in the month
During the Asian session, some low-impact figures were released. The New Zealand Food Price Index for August hit 0.3%, down from the previous reading of 1.3%. Subsequently, ANZ’s business confidence for September improved from -14.2 to -6.8. The preliminary reading showed business resistance, but the NZD / USD barely reacted.
Added to this, Jacinta Ardern, PM of New Zealand, revealed that the alert levels would be re-evaluated on September 20. In addition, the closure in Auckland has been extended as the outbreak persists.
On the US front, the CPI figures for August will be released on Tuesday, September 14. The CPI is expected to be 0.4%, while the CPI excluding energy and food is forecast at 0.3%.
NZD / USD Price Forecast: Technical Outlook
The NZD / USD is trading within the range of 0.7098-0.7120. The pair’s cap is the 200-day moving average (DMA) at 0.7115, while the 100-day DMA is at 0.7076, acting as support for the past four days. A break above the 200 DMA will expose 0.7200 as the target for the bulls. Once the latter clears, the next bidding zone hits the May 26 high of 0.7316.
On the other hand, if the 200 DMA does not rebound or a break below the 100 DMA could generate further downward pressure. The first support on the way down would be the 50 DMA at 0.7076. A clear break from that level would expose the subsequent key support levels at 0.7000 and 0.7047.
The Relative Strength Index is at 60.30, heading higher, supporting the NZD / USD bullish bias.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
