Corrects to near 0.6000 ahead of US inflation data

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<li><strong>NZD/USD faces selling pressure near 0.6040 as the US Dollar rebounds ahead of inflation data.</strong></li>
<li><strong>The market mood is still upbeat as the Fed is expected to keep interest rates unchanged at 5.25-5.50%.</strong></li>
<li><strong>NZD/USD rebounded quickly after discovering buying interest near the support zone placed in a range of 0.5850-0.5870.</strong></li>
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<p><a href="https://www.fxstreet.com/currencies/nzdusd">The NZD/USD pair</a> dropped to near the psychological support of 0.6000 after facing selling pressure near 0.6040 in the European session. The Kiwi asset was offered as the US Dollar Index (DXY) discovered an interim support near 105.00.</p>
<p>The market mood is still upbeat as the Federal Reserve (Fed) is expected to keep interest rates unchanged at 5.25-5.50% due to rising US bond yields. Meanwhile, investors await the United States <a href="https://www.fxstreet.com/economic-calendar/united-states">Consumer Price Index</a> (CPI) data for September, which will be published at 12:30 GMT.</p>
<p>As per the estimates, monthly headline and core inflation grew at a 0.3% pace. The annualized core CPI data is seen softening to 4.1% against the 4.3% reading from August. The hot inflation report would set a hawkish tone for the Federal Reserve’s (Fed) monetary policy meeting in November.</p>
<p>Meanwhile, the New Zealand Dollar is expected to remain on the tenterhooks ahead of the general elections. A new political power is expected to run the island nation which will face challenges of weak economic outlook and high inflation.</p>
<p>NZD/USD rebounded quickly after discovering buying interest near the support zone placed in a range of 0.5850-0.5870 on a four-hour scale. The upside in the kiwi asset remains restricted near the horizontal resistance plotted from September 29 high at 0.6050. The major stabilizes above the 50-period Exponential Moving Average (EMA) at 0.5980, which indicates that the medium-term trend has turned bullish.</p>
<p>The Relative Strength Index (RSI) (14) drops into the 40.00-60.00 range, which indicates that the bullish impulse has faded while the upside bias is still intact.</p>
<p>Going forward, a decisive break above September 29 high around 0.6050 would drive the major toward August 09 high at 0.6096. A breach of the latter would send the major toward July 31 high at 0.6226</p>
<p>On the flip side, a breakdown below the round-level support of 0.5900 would drag the major toward September 7 low at 0.5847. A slippage below the latter would expose the asset to the round-level support at 0.5800.</p>
<h2>NZD/USD four-hour chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/NZD_USD%20(5)-638326987459584341.png" target="_blank" rel="noopener"><img decoding="async" src="https://editorial.fxstreet.com/miscelaneous/NZD_USD%20(5)-638326987459584341.png" style="width: 600px; height: 265px;" /></a></p>
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<br /><a href="https://www.fxstreet.com/news/nzd-usd-price-analysis-corrects-from-06400-ahead-of-inflation-data-202310120913">Source link </a></p><p>The post <a href="https://forextraderhub.com/corrects-to-near-0-6000-ahead-of-us-inflation-data.html">Corrects to near 0.6000 ahead of US inflation data</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>