NZDUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.35% | 20.9 Pips |  |
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| Week to-date | 0.81% | 47.7 Pips |  |
||
| November | -1.01% | -60.6 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, recent economic data shows a decline in the housing market sector for October. Housing starts decreased to 1.311 million, down from a revised 1.353 million reported for September, according to the Census Bureau. This reports a reduction by approximately 42,000 units month-on-month. Moreover, another measure of future construction activity, Building Permits, also witnessed a significant fall. Building permits for October were reported at a negative 0.6 million, compared to a revised 1.425 million in September, indicating a notable contraction in planned housing projects.
The recent data from the U.S. housing sector suggest a deceleration, which could have various impacts on related industries and overall economic activity. A slowdown in housing starts and building permits typically points towards a cooling housing market, which could impact construction jobs, raw material suppliers, and real estate-related financial services.
Regarding the NZDUSD currency pair, the recent rise by 0.35% to 0.59109 on Tuesday indicates strengthening of the New Zealand dollar relative to the U.S. dollar. The dampened U.S. housing data might contribute to this trend as weaker economic indicators could lessen the likelihood of monetary tightening by the Federal Reserve, which essentially weakens the U.S. dollar. Without major economic events on the calendar for the day, current market sentiment and the direction taken by major currencies play significant roles in influencing the NZDUSD pair. In this context, the New Zealand dollar’s appreciation against the U.S. dollar could continue in the short term as investors digest the implications of a softer U.S. housing market.
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What can we expect from NZDUSD today?
NZDUSD on Tuesday rose 0.35% to 0.59109. 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 0.59247 with break above could target R2 at 0.59385 or figure level area. While towards the downside, we are looking at daily low of 0.58737 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.59130 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 | 0.5964 |
| R2 | 0.59385 |
| R1 | 0.59247 |
| Daily Pivot | 0.58992 |
| S1 | 0.58854 |
| S2 | 0.58599 |
| S3 | 0.58461 |
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