NZDUSD embraces 0.7100 awaiting for US inflation numbers

• NZD/USD seesaws around 0.7100, waiting for a fresh catalyst.
• The New Zealand PM Ardern to reassess alert levels on September 20.
• Market sentiment is upbeat though it fails to underpin NZD/USD.
• US CPI expected at 0.4%, excluding energy and food foreseen at 0.3%.

NZD/USD is steady in the session, trading around 0.7120, up 0.17% at the time of writing. During the Asian session, the pair dipped to 0.7097, then bounced back and reclaimed 0.7100. 
The market sentiment is in risk-on mode with major European and US equity indices in the green, with the exception of the Nasdaq, which is falling slightly.

New Zealand PM Ardern to reassess covid alert levels later on the month

During the Asian session, some low-impact figures were released. New Zealand’s Food Price Index for August came at 0.3%, lower than the previous reading at 1.3%. Later on, the ANZ Business Confidence for September improved from -14.2 to -6.8.  The preliminary reading showed business resilience but, the NZD/USD barely blinked.

Adding to this, Jacinta Ardern, PM of New Zealand, revealed that the alert levels would be reassessed on September 20. Furthermore, the lockdown in Auckland was extended as the outbreak persisted.

On the US front, the CPI figures for August will be released on Tuesday, September 14. The CPI is expected at 0.4%, while the CPI excluding energy and food number is foreseen at 0.3%.

NZD/USD Price Forecast: Technical outlook

NZD/USD is trading range-bound inside the 0.7098-0.7120 range. The lid in the pair is the 200-day moving average (DMA) at 0.7115, while the 100-DMA is at 0.7076, acting as support in the last four days. A break above the 200-DMA will expose 0.7200 as the bull’s target. Once the latter is cleared, the following supply zone May 26 high at 0.7316.

On the flip side, a failure to reclaim the 200-DMA or a break below the 100-DMA could lead to further downward pressure. The first support on the way down would be the 50-DMA at 0.7076. A clear breach at that level would expose the subsequent key support levels at 0.7000 and 0.7047.

The Relative Strength Index is at 60.30, aiming higher, supporting the NZD/USD upside bias.