Stocks Fluctuate as Powell Signals Cautious Fed ApproachStocks Fluctuate as Powell Signals Cautious Fed Approach
Gold rates in Pakistan November 10, 2023Gold rates in Pakistan November 10, 2023


  • The Fed left interest rates unchanged as
    expected with basically no change to the statement.
  • Fed Chair Powell stressed
    once again that they are proceeding carefully as the full effects of policy
    tightening have yet to be felt.
  • The recent US Core PCE came
    in line with expectations.
  • The labour market is
    starting to show some weakness as Continuing Claims
    yesterday showed another increase and the NFP data
    last Friday missed across the board.
  • The US Consumer
    fell for the third consecutive month
    although the data beat expectations.
  • The US ISM
    Manufacturing PMI
    last week missed expectations by a big
    margin, followed later on Friday with a disappointing ISM Services PMI,
    although the index remained in expansion.
  • The market doesn’t expect the Fed to hike anymore.

New Zealand

  • The RBNZ kept its official cash rate
    stating that demand growth continues to ease and it’s expected to decline
    further with monetary conditions remaining restrictive.
  • The New Zealand recent inflation data missed expectations supporting the
    RBNZ’s stance.
  • The latest labour market report showed a notable increase in
    the unemployment rate and a slowdown in wage growth which is something that is
    likely to keep the RBNZ on the sidelines.
  • The Manufacturing PMI fell further into contraction
  • The market doesn’t expect the RBNZ
    to hike anymore.

NZDUSD Technical Analysis –
Daily Timeframe


On the daily chart, we can see that the NZDUSD pair
last week surged into the key 0.60 resistance after
the less hawkish than expected FOMC and the disappointing US labour market
data. This week though, the pair sold off erasing most of the gains from last
week as the US Dollar is likely starting to be seen as the best out of a bad

NZDUSD Technical Analysis –
4 hour Timeframe

NZDUSD 4 hour

On the 4 hour chart, we can see that from a risk
management perspective, the sellers are likely to lean on the downward trendline where we
can find the confluence with the
major trendline, the red 21 moving average and the
61.8% Fibonacci retracement level.
The buyers, on the other hand, will want to see the price breaking higher to
invalidate the bearish setup and position for a rally back to the highs.

NZDUSD Technical Analysis –
1 hour Timeframe

NZDUSD 1 hour

On the 1 hour chart, we can see that the
latest leg lower diverged with
the MACD which
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, it might be a confirmation for a pullback into the
0.5930 resistance zone where the sellers will pile in for a drop into the lows.
If the price manages to drop into the support zone around the 0.5860 level, the
buyers are likely to step in with a defined risk below the level to position
for a rally into the trendline and target a breakout.

Upcoming Events

Today the only market moving event will be the
release of the University of Michigan Consumer Sentiment report.

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