FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.54% higher on the day at 0.6229 at around 06:20 GMT

Previous Week's High/ Low: 0.6294/ 0.6167

Previous Session's High/ Low: 0.6211/ 0.6180

Fundamental Overview:

Antipodeans edged higher on Tuesday as a lack of negative news in banks helped lift riskier assets.

Improving risk appetite led traders to pivot into more risk-driven assets like the kiwi aiding the pair higher.

New Zealand's GDP in Q4 of 2022 surprisingly contracted more than expected with the RBNZ is still in the process of cooling runaway inflation.

The central bank has lifted its policy rate by a total of 450 basis points in ten straight meetings, pushing the cash rate to a 41-year record of 4.75%.

Markets expect the RBNZ will go ahead and lift its cash rate by a quarter point when it meets on April 5th. 

On the other side, the US dollar Index remained on the defensive well below 103.00 ahead of key data.

Later in the day, US Conference Board Consumer Confidence index will take center stage ahead of FHFA’s House Price Index, Advanced Goods Trade Balance and the first testimony by FOMC’s S.Barr.

Major Support and Resistance Levels:

Support - 0.6157 (200-DMA), Resistance - 0.6244 (55-EMA)

Technical Summary: Technical indicators do not show a clear directional bias. Price action remains capped between 200-DMA and 55-EMA. Further sideways grind likely.