NZDUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.23% | 13.6 Pips |  |
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| Week to-date | -0.57% | -34.7 Pips |  |
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| October | -4.78% | -303.3 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In September, New Zealand experienced a positive shift in its trade dynamics as evidenced by the latest data from Stats NZ. The country’s export value rose to $5.01 billion, showing an improvement from the $4.97 billion recorded in August. This increase in exports indicates a robust demand for New Zealand’s goods on the global market, which is a positive sign for the country’s economy. Concurrently, New Zealand saw a slight decrease in imports, which fell to $7.12 billion in September from $7.17 billion in August. The decline in imports could suggest a relative drop in domestic demand or efforts to reduce foreign dependency, potentially contributing to economic stabilization and cost-cutting measures.
Moreover, New Zealand’s 12-month trade balance saw a noticeable improvement, decreasing to a deficit of 9.09 NZD billion, down from a revised deficit of 9.29 NZD billion in August. This adjustment in the trade balance may be indicative of an effective trade policy or changes in international trade conditions favoring New Zealand. Overall, the improved export-import ratio and trade balance seem to reflect positively on New Zealand’s economic resilience and its ability to manage the external sector effectively.
Regarding the impact on NZDUSD, the reported data suggests a strengthening economic scenario for New Zealand, which has instilled some confidence in the NZD against the USD. On Tuesday, the NZDUSD moved higher by 0.23% to reach 0.60420, potentially a response to the encouraging trade figures. The increment in exports and a better trade balance could have supported the NZD appreciation as market participants likely perceived these as positive economic indicators, prompting demand for the New Zealand dollar. The absence of major upcoming economic events also hints at a stable short-term outlook for the NZDUSD pair. A continued improvement in trade metrics might further bolster the NZD, enhancing its attractiveness in the forex markets.
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What can we expect from NZDUSD today?
NZDUSD on Tuesday rose 0.23% to 0.60420. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.60618 with break above could target R2 at 0.60817 or figure level area. While towards the downside, we are looking at daily low of 0.60205 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.60610 may suggest continuation after recent positive movement.
For the week to-date, take note that NZDUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.61023 |
| R2 | 0.60817 |
| R1 | 0.60618 |
| Daily Pivot | 0.60412 |
| S1 | 0.60213 |
| S2 | 0.60007 |
| S3 | 0.59808 |
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