NZD/USD ended the week solidly up 0.6700%, boosted by weaker US CPI data. US consumer inflation expectations fell, weighing on the US dollar. NZD/USD Technical Analysis: Failure at 0.6 00, sellers rejoiced and saw a drop to 0.6300. NZD/USD bounced back after testing this week’s high of 0.6 17 and dipped below 0.6 00 after consolidating in the 0.6300-0.6 20 range last week. Positive US consumer sentiments proved detrimental to the US dollar (USD), which ended the week lower. At the time of writing, NZD/USD is currently trading at 0.6389, down 0.03%. NZD/USD Cuts RISK IMPULSE NOTE Wall Street held on to gains as the week ended. Thursday’s US inflation data cheered investors and raised hopes of a slower rate cut by the US Federal Reserve (Fed), which weakened the US dollar (USD). CME’s FedWatchTool shows the Fed has a 9 .2% chance of a 25bps rate hike, which would push the federal funds rate to a range of .50% to .75%. The University of Michigan (UoM) Consumer Sentiment Survey of , showed that sentiment improved, beating expectations by 60.5 and scoring 6 .6. Meanwhile, Americans’ one-year inflation expectations were revised to percent from . percent in December, while five-year inflation is estimated to have risen to 3 percent from 2.9 percent last month. Elsewhere, the US dollar index (DXY), which measures the pound’s performance against a basket of six rivals, erased its earlier gains, rising 0.06% to 102.18 . NZD / USD Technical Analysis Therefore, NZD / USD moved lower, although supported by the 20-day exponential moving average (EMA) around 0.6329. However, a failure at 0.6 00 has put NZD/USD under further selling pressure, with bears eyeing a break below the 20-day EMA before testing the 0.6300 level. On the positive side, if NZD/USD recovers to 0.6 00, it could set the pair up to test the December 2022 high of 0.6513.

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