NZDUSD Analysis

Performance
Period	Pct	Chg	Momentum
Friday	-0.74%	-43.7 Pips
Week 2023-10-13	-1.74%	-104 Pips
October	-1.87%	-112 Pips

Upcoming key events for the new week (London Time)

Mon 10:45 PM CPI Inflation Rate (3-mth)
Mon 10:45 PM CPI Inflation Rate (12-mth)
Tue 01:30 PM Monthly Retail Trade (1-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims

What happened over the week

🇺🇸 U.S. Michigan Index of Consumer Sentiment in October preliminary estimate below forecast and dropped to 63 points compared to previous figure 68.1 points in September Source: University of Michigan
🇺🇸 In the week ending 07 October, U.S. Initial Unemployment Insurance Claims rose to 209K compared to previous figure 207K Source: Department of Labor
🇺🇸 U.S. CPI Inflation Rate (12-mth) in September unchanged at 3.7% compared to previous report in August. Source: Bureau of Labor Statistics
🇺🇸 U.S. CPI Inflation Rate excluding Food and Energy sectors (12-mth) in September dropped to 4.1% compared to previous figure 4.3% in August Source: Bureau of Labor Statistics
🇺🇸 U.S. Producer Price Index (12-mth) in September exceed forecast and rose to 2.2% compared to previous figure 2, revised from 1.6% in August

From X (Twitter)

Latest release: Food prices increase 8.0 percent annually.https://t.co/xE5tqvsiIo pic.twitter.com/ss2Ris8wSE

— Stats NZ (@Stats_NZ) October 11, 2023

What can we expect from NZDUSD for the new week and what happened on Friday?

NZDUSD on Friday dropped -0.74% to 0.58830. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2023-10-13, the pair dropped -1.74% or -104 pips lower.

Looking ahead on Monday, NZDUSD looks bearish as the pair posted lower in Friday trading session.

For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 0.60552 or at least consolidates above Weekly Pivot level of 0.59396. On the downside, we are looking at week low 0.58807 or 0.58241 (WS1) as immediate support level. NZDUSD need to break on either side to indicate a short-term bias. A close below week low of 0.58807 would indicate selling pressure.

For the month of October, NZDUSD is down by -1.87% or -112 pips lower.

Weekly key levels to watch out:

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CPI for all items rises 0.4% in September; shelter up Source: Bureau of Labor Statistics
Minutes of the Federal Open Market Committee, September 19-20, 2023 Source: Federal Reserve
PPI for final demand advances 0.5% in September; goods rise 0.9%, services increase 0.3% Source: Bureau of Labor Statistics
Monthly Wholesale Trade: Sales and Inventories Source: Census Bureau