- A meanwhile correction in NZD/USD is playing out.
- However, a break of structure can be noted as a bearish bias for the days ahead.
However, market expectations for the peak in the Fed funds rate up around 30bp since the data and the technical outlook show a broken down market on the charts with structures being broken.
Additionally, the latest data showed that New Zealand’s Unemployment rate edged up to 3.4% in the 4th quarter of 2022 from 3.3% in the 3rd quarter, bolstering bets that the central bank will shift to a less aggressive stance. Annual inflation also jumped to a near 3-decade high of 7.2% in the December quarter but below the Reserve Bank of New Zealand’s 7.5% projection. If the sentiment that the Reserve Bank of New Zealand were to downshift to a 50 basis point rate hike in February after delivering a record 75 basis point increase in November, the downside bias on the charts will be underpinned:
Zoomed in …
A meanwhile correction is playing out but the break of structure can be noted as a bearish bias for the days ahead that leaves 0.6200 vulnerable.