NZDUSD Faces the 200 Daily SMA After New Zealand PPI Inflation

The USD to NZD exchange rate was consolidating last week, but NZD/USD resumed its upward trend this week, with the price breaching over 0.61 following this week’s lower US CPI inflation report. Early this morning, we obtained PPI producer inflation from New Zealand, which was also forecast to drop down.

The exchange rate of NZD/USD began trending upward in April, indicating strength in the New Zealand dollar relative to the US dollar as the price moved above 0.60 again. The trend upward coincided with a decline in the value of the US dollar, influenced by weaker economic data from the United States.

The price of NZD/USD consolidated around the 50-day Simple Moving Average (SMA) last week. This moving average acted as a support level during consolidation. However, buyers resumed the uptrend this week, pushing the price towards the 200-day SMA, which has been acting as resistance on the daily chart.

NZD/USD Chart Daily – Will the Price Reverse Down at the 200 SMA?

The price came close to touching the 200-day SMA, represented by the purple line on the chart, but retreated from it. This moving average has been a significant resistance level in the past. The retreat from the 200-day SMA reflects fundamental uncertainty in the market. This uncertainty could be related to various factors such as economic data releases, geopolitical events, or changes in monetary policy. Today we had the PPI (Producer Price Index) report from new Zealand.

The New Zealand Producer Price Index (PPI) Report for the First Quarter

• Q1 New Zealand PPI Output QoQ: The output prices for the first quarter increased by 0.9% compared to the previous quarter. This growth exceeded expectations, as analysts had anticipated a 0.5% increase. The previous quarter, Q4, recorded a 0.7% increase in output prices.
• Q1 PPI Input QoQ: Input prices for the first quarter also saw an increase, rising by 0.7% compared to the previous quarter. This result slightly surpassed expectations, as analysts had forecasted a 0.6% increase. In the previous quarter, Q4, input prices had risen by 0.9%.

NZD/USD Live Chart