Daily Analysis For NZD/USD 22-03-2023

Daily Analysis For NZD/USD 22-03-2023

NZD/USD Analysis
NZD/USD
Economic Events and Scenario for NZD/USD
Economic Events : -
GMTEventImpactCurrency
00:00(Australia) Westpac Leading Index MoMLowAUD
05:30(Netherlands) Consumer ConfidenceMediumEUR
07:00(United Kingdom) PPI Core Output YoYLowGBP
07:00(United Kingdom) PPI Core Output MoMLowGBP
07:00(United Kingdom) Core Inflation Rate MoMLowGBP
07:00(United Kingdom) PPI Output MoMLowGBP
07:00(United Kingdom) PPI Input MoMLowGBP
07:00(United Kingdom) PPI Output YoYLowGBP
07:00(United Kingdom) PPI Input YoYLowGBP
07:00(United Kingdom) Inflation Rate MoMMediumGBP
07:00(United Kingdom) Core Inflation Rate YoYMediumGBP
07:00(United Kingdom) Inflation Rate YoYHighGBP
07:00(United Kingdom) Retail Price Index YoYLowGBP
07:00(United Kingdom) Retail Price Index MoMLowGBP
08:00(Slovakia) Current AccountLowEUR
08:00(Switzerland) Current AccountMediumCHF
08:45(Euro Area) ECB President Lagarde SpeechMediumEUR
09:00(Euro Area) Current AccountLowEUR
09:00(Euro Area) Current Account s.aLowEUR
09:30(Euro Area) ECB Lane SpeechMediumEUR
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(Italy) Current AccountLowEUR
10:00(United Kingdom) 5-Year Treasury Gilt AuctionLowGBP
10:30(Germany) 10-Year Bund AuctionMediumEUR
11:00(Ireland) Wholesale Prices MoMLowEUR
11:00(Ireland) Wholesale Prices YoYLowEUR
11:00(United Kingdom) CBI Industrial Trends OrdersMediumGBP
11:00(United States) MBA 30-Year Mortgage RateMediumUSD
11:00(United States) MBA Mortgage ApplicationsLowUSD
11:00(United States) MBA Mortgage Market IndexLowUSD
11:00(United States) MBA Mortgage Refinance IndexLowUSD
11:00(United States) MBA Purchase IndexLowUSD
11:30(Portugal) Current AccountLowEUR
12:05(Germany) Bundesbank Mauderer SpeechLowEUR
12:30(Canada) New Housing Price Index MoMMediumCAD
12:30(Canada) New Housing Price Index YoYMediumCAD
13:45(Euro Area) ECB Panetta SpeechLowEUR
14:00(Kosovo) Balance of TradeLowEUR
14:30(United States) EIA Refinery Crude Runs ChangeLowUSD
14:30(United States) EIA Crude Oil Stocks ChangeMediumUSD
14:30(United States) EIA Heating Oil Stocks ChangeLowUSD
14:30(United States) EIA Gasoline Production ChangeLowUSD
14:30(United States) EIA Distillate Stocks ChangeLowUSD
14:30(United States) EIA Crude Oil Imports ChangeLowUSD
14:30(United States) EIA Gasoline Stocks ChangeMediumUSD
14:30(United States) EIA Cushing Crude Oil Stocks ChangeLowUSD
14:30(United States) EIA Distillate Fuel Production ChangeLowUSD
15:30(United States) 17-Week Bill AuctionLowUSD
17:00(Germany) Bundesbank Nagel SpeechLowEUR
17:30(Canada) BoC Summary of DeliberationsMediumCAD
18:00(United States) Fed Interest Rate DecisionHighUSD
18:00(United States) FOMC Economic ProjectionsHighUSD
18:00(United States) Interest Rate Projection - LongerMediumUSD
18:00(United States) Interest Rate Projection - CurrentMediumUSD
18:00(United States) Interest Rate Projection - 2nd YrMediumUSD
18:00(United States) Interest Rate Projection - 1st YrMediumUSD
18:30(United States) Fed Press ConferenceHighUSD
23:00(Japan) Reuters Tankan IndexMediumJPY
Today's Scenario: - The NZD/USD pair has rebounded from the 0.6167 level and is currently striving to recapture the key resistance level of 0.6200 during the early Asian session. Despite the Federal Reserve's decision to implement a consecutive 25 basis point rate hike for its March monetary policy, the kiwi asset remains solidly biased towards the upside.
The S&P500 has carried forward its recovery from Monday's session, settling on a positive note on Tuesday. This indicates a risk-on market sentiment as investors have digested the Fed's decision to continue with its policy-tightening spree. However, the US Dollar Index (DXY) is struggling to maintain its position above 103.20 as investors remain unconvinced that a liquidity injection of $30 billion into the First Republic Bank would safeguard it from potential financial difficulties.
Buy Scenario: - The NZD/USD pair is currently trading near the ascending trendline of the Ascending Triangle chart pattern, which was formed on March 9, starting from a low of 0.6105. The pattern's horizontal resistance level is situated around 0.6277, originating from the high on March 1.
A bearish signal, indicated by the 20 and 50-period Exponential Moving Averages (EMAs) at 0.6220, implies potential further decline.
It is worth noting that the Kiwi asset is at a critical level, and responsive buying could emerge at any moment.
The Relative Strength Index (RSI) (14) is currently below the 40.00 threshold, indicating no signs of divergence and still in the oversold zone.
If the NZD/USD pair surpasses the March 1 high at 0.6276, it could prompt a buying opportunity, pushing the pair towards the round-level resistance at 0.6300, followed by the high on February 14 at 0.6389. Till we do not advise to buy NZD/USD.
Sell Scenario: - Alternatively, if the NZD/USD pair breaks below the March 21 low at 0.6167, it could fall further towards the March 15 low at 0.6139. If it breaks below that level as well, the pair could face more downside pressure and potentially drop towards the round-level support at 0.6100. Till we do not advise to sell NZD/USD.
Support and Resistance Level: -
SupportResistance
S1 0.6155-R1 0.6246
S2 0.6115-R2 0.6297
S3 0.6064-R3 0.6337

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