NZDUSD recovers to 0.6000 and the dollar sinks after the US CPI data.

- Article Top Advertisement -
  • The kiwi bounces away from 0.5840 and rises to 0.6000.
  • US inflation data disappointed expectations and has dented the dollar.
  • Stock markets rally on hopes the Fed will ease in coming months.

The dollar soared after the release of cooler than expected US inflation figures. The pair, which has been trading lower during the Asian and European sessions, rebounded from 0.5840 to hit session highs just above 0.6000.

Dollar falls as US inflation cools

US inflation was unchanged at 0.4%, versus market expectations for a 0.6% reading, while year-on-year consumer prices fell to a 7.7% rate, well above the 8% consensus , after a reading of 8.2% in September.

- Article Inline Advertisement 1-

Core CPI, the Fed’s preferred gauge for assessing inflationary pressures, which excludes volatile food and energy prices, has eased to 0.3% in October from 0.6% in September, while the market had expected a smoother decline to 0.5%. In year-on-year terms, the core CPI has fallen to 6.3% from 6.6% in September.

These figures add to the evidence that inflation may have peaked, easing pressure on the Federal Reserve to maintain its aggressive monetary tightening cycle and boosting expectations of a softer rate hike in December.

- Advertisement -

The dollar and US Treasuries have fallen sharply. The Dollar Index, which has appreciated more than 16% so far this year, boosted by the aggressive stance of the Fed, has lost about 2.2% after the data. Likewise, the benchmark 10-year US Treasury yield has lost 30 basis points, currently at 3.83%.

On the other hand, US stock markets have surged on the data, with the Dow Jones up 2.5%, the S&P500 appreciating 4% and the Nasdaq 5.42% above opening levels.

Technical levels to watch


last price today 0.6004
daily change today 0.0124
Today’s daily variation in % 2.11
Daily opening today 0.588
daily SMA20 0.5769
daily SMA50 0.5819
daily SMA100 0.6028
daily SMA200 0.6331
Previous daily high 0.5971
Previous Daily Low 0.5873
Previous Weekly High 0.5944
Previous Weekly Low 0.5741
Previous Monthly High 0.5874
Previous Monthly Low 0.5512
Daily Fibonacci of 38.2% 0.591
Daily Fibonacci of 61.8% 0.5934
Daily Pivot Point S1 0.5845
Daily Pivot Point S2 0.581
Daily Pivot Point S3 0.5747
Daily Pivot Point R1 0.5943
Daily Pivot Point R2 0.6006
Daily Pivot Point R3 0.6042

Source: Fx Street

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles