NZD/USD follows AUD/USD and prepares for next week’s US CPI

• The NZD/USD pair went up and down in the US session.
• All eyes are on the US data for next week.

He NZD/USD traded similarly to the Aussie on Thursday. Before the close on Wall Street, the Kiwi is trading around 0.3% lower on the day at 0.6328 and has fallen in the New York session within a range of 0.6389 and 0.6302.

Both the NZD/USD and AUD/USD fell in the London session and at the Wall Street open, pushing the price below traders’ new long positions higher on the day. In the case of the Kiwi, bulls chasing a break above 0.6370 came under heavy pressure as the price fell sharply towards 0.6350.

The US dollar was rocked today, initially bidding and breaking structure in the case of the DXY index as follows:

However, the bulls sprang into action:

The labor market has not been what the Federal Reserve expects and Thursday’s jobless claims revealed risks of a tightening scenario for longer as there was only a small rebound in jobless numbers. ”Initial claims for jobless benefits rose to 196,000 in the week to February 4, while continuation claims also rose.

The weekly jobless claims data can fluctuate, so a reading does not indicate a trend. Furthermore, the total number of jobless claims remains quite low,” ANZ Bank analysts said.

Looking ahead to the week, the US Consumer Price Index will be released, showing inflation at 0.5%m/m in January and core inflation at 0.3%m/m. If these figures are reached, core inflation would drop to 5.4% yoy from 5.7% and headline inflation to 6.2% from 6.6%,” ANZ Bank analysts said, also noting the release of retail sales data and manufacture.

If we continue to see strength in this data, it will be very difficult for Federal Reserve officials to signal anything other than further tightening of monetary policy.”