NZDUSD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.31% | 18.2 Pips |  |
||
| Week to-date | 0.51% | 29.8 Pips |  |
||
| November | -1.33% | -79.6 Pips |  |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
Recent economic data from the United States indicates a mixed performance across various sectors. Consumer spending, according to the Bureau of Economic Analysis, saw a slight decrease to 0.4% in October from 0.5% in September. Meanwhile, the Personal Consumption Expenditures (PCE) Price Index, excluding food and energy, saw a modest increase to 2.8% from 2.7%, while the overall PCE Price Index for 12 months rose to 2.3% in October from 2.1% in the previous month. Personal incomes noted an improvement, increasing by 0.6% during the same timeframe. Nevertheless, durable goods orders, excluding transportation, fell to 0.1% from 0.5% in September, although orders excluding defense rose by 0.4%. Durable goods new orders exhibited a meager increase of 0.2%, but the Chicago Purchasing Managers’ Index demonstrated a decline to 40.2 in November. In housing, pending home sales fell to 2% in October from 7.4% the prior month, and the New Home Sales metric exhibited a decline from the previous revision of 7%. Lastly, the GDP annual rate for Q3 was steady at 2.8%, while the GDP Price Index went up slightly to 1.9% in Q3 from 1.8% in Q2.
For New Zealand, the official cash rate set by the Reserve Bank of New Zealand saw a decrease to 4.25% from a previous rate of 4.75%. This change comes at a time of economic adjustments as seen by these fiscal measures.
The data from both the United States and New Zealand bear significant implications for the NZDUSD currency pair. The contrasting monetary policies, with the U.S. maintaining relatively stable macroeconomic indicators contrasted against New Zealand’s decision to lower interest rates, suggest a strengthening of the USD from a financial stability perspective. Despite this, the current market evaluation was favorable to the NZD, as evidenced by Wednesday’s 0.31% increase to 0.58919 for the NZDUSD. This movement could be attributed to market anticipation around interest rate adjustments and future economic conditions favoring higher yielding currencies. However, given the robust labor market and particular price index performances in the U.S., there still exists considerable upward pressure on the USD, which could eventually influence the NZDUSD further in the future. Consequently, traders and investors are advised to closely monitor these economic indicators to assess future currency movements.
Latest from X (Twitter)
What can we expect from NZDUSD today?
NZDUSD on Wednesday rose 0.31% to 0.58919. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.59247 with break above could target R2 at 0.59575 or figure level area. While towards the downside, we are looking at daily low of 0.58257 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.59080 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 | 0.6007 |
| R2 | 0.59575 |
| R1 | 0.59247 |
| Daily Pivot | 0.58752 |
| S1 | 0.58424 |
| S2 | 0.57929 |
| S3 | 0.57601 |
#NZDUSD Trending on Twitter
[custom-twitter-feeds hashtag=”#NZDUSD” num=3 showheader=false]