FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

NZD/USD was trading 0.09% lower on the day at 0.5599 at around 05:15 GMT. The pair has erased early gains and has slipped lower from session highs at 0.5629.

Escalating geopolitical tensions between Japan and North Korea keep sentiment sour, weighing on the kiwi. 

On the other side, firmer US NFP data has strengthened the case of a 75 bps rate hike by the Fed, keeping the dollar buoyed.

Data released by the US Bureau of Labor Statistics on Friday showed the US economy generated fresh 263k jobs in September, higher than the projections of 250k. 

The Unemployment Rate scaled down to 3.5%, bolstering the case of a fourth consecutive 75 basis point (bps) rate hike by the Federal Reserve.

Major focus this week will be on the US Consumer Price Index (CPI) data, which is due on Thursday. Markets expect the headline inflation to print at 8.1%, lower than the prior release of 8.3%. 

Recovery attempts in the pair are capped at 21-EMA. GMMA indicator shows major and minor trend are strongly bearish. 

Major Support Levels: 

S1: 0.5496 (Lower BB)

S2: 0.5469 (March 2020 low)

Major Resistance Levels: 

R1: 0.5665 (5-DMA)

R2: 0.5683 (200H MA)

Summary: NZD/USD was trading with a bearish bias. The major is on track to refresh yearly lows below 0.5564.