The Inflation Rate Year-over-Year (YoY) and Inflation Rate Quarter-over-Quarter (QoQ) for the fourth quarter are expected from New Zealand at 21:45 GMT.
In the realm of forex trading, the Inflation Rate is a key metric gauging the shift in the prices of goods and services acquired by consumers. If the reported figure surpasses the anticipated value, it’s considered favourable for the New Zealand Dollar (NZD).
Analyzing the NZDUSD pair on the 4-hour timeframe using technical analysis, we observe a range-bound movement between 0.60838 (as the support) and 0.63712 (as the resistance) since December 13, 2023. Notably, the support was breached on January 22, 2024, at 18:00 GMT but retraced back within the established range. This suggests a potential retest of the support level. If the support is successfully tested, there’s a heightened likelihood of the price persisting in its current upward trajectory towards the resistance level at 0.63712.
Considering your role as a trader, how do you strategize for today’s events, balancing the impact of the Inflation Rate news alongside the dynamics of the NZDUSD pair’s 4-hour ranging market?
