NZD/USD printing fresh highs on the CPI spike to 0.7182

Following the close on Wall Street, NZD/USD has continued its lead in early Asia with impressive readings in CPI that puts the doves in check and sees NZD/USD from 0.7126 to 0.7180 (0.7182 the recent high) on the same hourly stick.

New Zealand Q3 inflation data readings came as 0.2 % q/q vs 0.0% expected, but lower than previous at 0.4%. At the same time, y/y results beat expectations by a slightly lesser margin of 0/1% with a reading of 0.2 %, albeit lower than the prior of 0.4% again. We now await the GDT price index and US CPI tonight for further catalysts for NZD/USD.

NZD/USD levels

Analysts at Westpac corrective behaviour to expire ahead of 0.7220, while on a longer term outlook, one - three months view, the analysts remain bearish. "Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect."

Meanwhile, the current price is 0.7178, with resistance ahead at 0.7180 (Daily Classic R3), 0.7184 (Daily High), 0.7187 (Daily 20 SMA), 0.7251 (Weekly Classic R2) and 0.7317 (Weekly Classic R3). Next support to the downside can be found at 0.7168 (Weekly Classic R1), 0.7168 (Daily 100 SMA), 0.7157 (Daily Classic R2), 0.7143 (Yesterday's High) and 0.7136 (Weekly High).