As reported late last night (at 21:45 GMT) in Statistics New Zealand, the consumer price index came out for the 3rd quarter with a value of +2.2% (against the forecast of +1.6% and against the previous value of +1.7 %). The annual CPI came out with a value of +7.2% (against the forecast of +6.6% and against the previous value of +7.3%).
After the publication of these data, the NZD/USD pair rushed up, reaching an intraday high at around 0.5704, corresponding to levels almost 2 weeks ago.
Despite US dollar rebounding early in European trading session, NZD/USD half retains bullish momentum gained from better-than-expected inflation data in New Zealand, trying to stay above short-term important support level 0.5635: at the time of publication of this article, the pair is trading near the mark of 0.5662. Characteristically, technical indicators paint a contradictory picture (for more details, see NZD/USD: technical analysis and trading recommendations for 10/18/2022 ->
In general, the downward dynamics of NZD/USD prevails, while the pair remains in the zone of a long-term bear market – below the key resistance levels 0.6690, 0.6310. Only their breakdown will bring the pair back into the zone of a long-term bull market.
*) For upcoming events of this week, see Key Economic Events of the Week 10/17/2022 – 10/23/2022 – > https://www.instaforex.com/en/forex_analysis/324350/?x=PKEZZ).
Support levels: 0.5635, 0.5600, 0.5565, 0.5512, 0.5470
Resistance levels: 0.5704, 0.5800, 0.5880, 0.6065, 0.6200, 0.6310, 0.6560, 0.6690, 0.6735