Analyzing NZD/USD Reaction to US Inflation Data

NZD/USD Fundamental Outlook Ahead of Key US CPI Data

The NZD/USD forex pair, commonly known as the “Kiwi,” is a prominent forex pair representing the exchange rate between the New Zealand dollar and the US dollar. This pair’s daily news analysis is particularly sensitive to US economic events, given the USD’s global role, and also reflects New Zealand’s economic indicators such as inflation and food price indexes. Today, significant US news includes the release of CPI data and multiple Federal Reserve official speeches, which could shape USD sentiment. Higher-than-expected CPI figures would likely support a hawkish Federal Reserve outlook, strengthening the USD, while dovish signals or lower data may benefit the NZD.

Chart Notes:

• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.

In the NZD/USD H4 chart, the pair’s technical indicators (Bollinger Bands and MACD) illustrate its recent price action. The last five candles have shown a climb from the lower Bollinger Band toward the middle band, with three green, bullish candles followed by two red, bearish candles. This shift, especially with the red candles reversing after touching the middle band, indicates possible bearish momentum. The Bollinger Bands have also widened slightly, signaling increased NZDUSD volatility, while the MACD suggests downward momentum, supporting a Kiwi bearish outlook in the short term.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.