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A meanwhile correction in NZD/USD is playing out.
However, a break of structure can be noted as a bearish bias for the days ahead.
NZD/USD was significantly lower after Friday’s outsized US Nonfarm Payrolls print, but the bulls are moving in as the following technical analysis illustrates.
However, market expectations for the peak in the Fed funds rate up around 30bp since the data and the technical outlook show a broken down market on the charts with structures being broken.
Additionally, the latest data showed that New Zealand’s Unemployment rate edged up to 3.4% in the 4th quarter of 2022 from 3.3% in the 3rd quarter, bolstering bets that the central bank will shift to a less aggressive stance. Annual inflation also jumped to a near 3-decade high of 7.2% in the December quarter but below the Reserve Bank of New Zealand’s 7.5% projection. If the sentiment that the Reserve Bank of New Zealand were to downshift to a 50 basis point rate hike in February after delivering a record 75 basis point increase in November, the downside bias on the charts will be underpinned:
Zoomed in …
A meanwhile correction is playing out but the break of structure can be noted as a bearish bias for the days ahead that leaves 0.6200 vulnerable.
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