January 22, 2023 21:23 GMT
Softer Start, Q4 CPI Headlines Week
NZD/USD prints at $0.6460/65, opening trading ~0.3% below Friday's closing levels in thin liquidity before recovering to current levels.
- Chris Hipkins was confirmed as New Zealand's next Prime Minister on Saturday, he takes over ahead of an election in October.
- On Friday NZD/USD firmed as US Equities rallied in the NY session after dovish Fedspeak from Gov Waller. The pair rallied ~1.1% from trough to peak.
- The S&P500 rose ~1.8%, and the DXY finished Fridays trade ~0.1% lower. 10 Year US Treasury Yields were ~9bps firmer.
- Technically the trend remains bullish, the next target for bulls is the high from 18 Jan at $0.6530. Bears look to first break 20-day EMA at $0.6375 to turn the tide.
- Wednesday's Q4 CPI headlines the week's data releases, we also have Dec PSI on the wires tomorrow.
- Chinese markets are closed all week due to Lunar New Year, wider regional liquidity may be impacted as a result.