The NZD/USD is trading near 0.60275 as of this writing with typical fast value changes being produced when considering speculative quick wagers. The currency pair has been able to demonstrate a rather incremental climb higher the past week of trading, this after challenging a low of nearly 0.58725 on the 3rd of October. The NZD/USD while correlating to the broad Forex market has also moved slightly ahead of other major currency pairs as it fights back against the USD.
NZD/USD Trend Higher is Tempting but Remains a Wagering Game
Bullish traders of the NZD/USD have been waiting for a turnaround higher in the currency pair to begin a sustained climb. The move above 0.600000 is a polite indicator the tide may be turning for the NZD/USD, but before buyers leap blindly into pursuit of the Forex pair, they should consider what is ahead today and tomorrow.
An inflation report via the Producer Price Index will come from the U.S. today. The inflation report is considered important in some circles and its outcome will shake sentiment depending on the outcome. A decline in the broad PPI numbers is expected today, if that result is fulfilled it could spur on a brief amount of USD selling. The price of energy has been relatively high in the past month.
However, a handful of hours later the U.S. Federal Reserve will release its FOMC Meeting Minutes, which financial institutions will react to regarding its insights into the U.S. central bank’s thinking. If the NZD/USD remains above technical support levels in the aftermath of the inflation data and the Fed report this may be a bullish sign for the NZD/USD.
More U.S Inflation Data on Thursday for the NZD/USD
- CPI inflation numbers from the U.S will be released tomorrow and this will impact the broad markets and Forex, including the NZD/USD. A slightly lower inflation result is anticipated via the broad Consumer Price Index publications.
- The NZD/USD traded above the 0.60500 level momentarily early this morning, traders may be looking at this higher number as a potential target upwards. However, conditions may prove choppy over the next twelve hours because of today’s PPI and FOMC releases.
Looking for upside price action in the NZD/USD is certainly tempting for bullish traders, but remaining realistic regarding price goals is important. Traders should use take profit orders to cash out winning positions if they develop. The near term will be critical regarding the trend of the NZD/USD regarding behavioral sentiment, so traders should be careful.
NZD/USD Short Term Outlook:
Current Resistance: 0.60365
Current Support: 0.60195
High Target: 0.60680
Low Target: 0.59975
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