- The dollar jumps after the US CPI, but loses momentum in recent hours.
- US stocks bounce back after drop, turning positive.
- NZD/USD bottoms slightly above 0.5500 and then rebounds sharply.
The NZD/USD fell in a few minutes from 0.5630 to 0.5510, reaching the lowest level since March 2020 after the publication of the US CPI data. Later the pair regained ground by rising again towards 0.5600.
volatility hours
The Dollar rose strongly immediately after the release of the September CPI in the US, which showed higher than expected readings. The Consumer Price Index rose 0.2% in September, above the 0.1% market consensus. The underlying annual rate reached a new maximum of the decade, 6.6%.
These figures triggered sharp movements that continue to occur. The dollar soared and US yields hit new all-time highs. Later, a rebound in stock prices on Wall Street weakened the dollar, triggering a reversal that took NZD/USD to 0.5600.
NZD/USD could face resistance at 0.5620 before daily high at 0.5635/40. If the pair breaks above 0.5740 it would ease the downside pressure. A retracement below 0.5760 would expose recent lows again.
Technical levels
Source: Fx Street
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