NZDUSD Analysis
| Week Ending 2024-12-06 | |||
| Open | High | Low | Close |
| 0.59 | 0.59 | 0.58 | 0.58 |
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | -0.86% | -50.3 Pips |  |
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| Week 2024-12-06 | -1.26% | -74.6 Pips | |
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| December | -1.09% | -64.5 Pips |  |
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Upcoming key events for the new week (London Time)
Wed 01:30 PM CPI Inflation Rate (12-mth) 
Thu 01:30 PM Initial Unemployment Insurance Claims Thu 01:30 PM PPI excluding Food and Energy sectors (12-mth)
What happened over the week
In the United States, a series of economic indicators have shown mixed results. The Index of Consumer Expectations marginally decreased from 3.2% in November to 3.1% in December, reported the University of Michigan. Meanwhile, the Index of Consumer Sentiment rose to 74 points in December, compared to 71.8 points in November. According to the Bureau of Labor Statistics, there was a significant increase in Average Hourly Earnings in November, climbing to 4% on an annual basis, consistent with October’s rate. Notably, U.S. Nonfarm Payroll Employment saw a considerable jump in November to 227,000, an upward revision from October’s 36,000. However, the unemployment rate saw a slight uptick to 4.2% from 4.1% in October.
Further data from the U.S. Department of Labor shows an increase in initial unemployment insurance claims for the week ending on November 30, rising to 224,000 from a revised 215,000. Similarly, new orders for manufactured goods grew modestly by 0.2% in October, reversing a previous decline of 0.2% in September, per the Census Bureau. Job openings also increased, with the JOLTS report indicating a rise to 7.744 million in October from a revised 7.372 million in September.
The NZDUSD pair saw a drop of 0.86%, closing at 0.58319 on Friday. Over the week ending December 6, the pair has moved lower by 1.26%, although it remains within the prior week’s trading range. The upcoming U.S. economic events, specifically the high-impact Consumer Price Index (CPI) and Producer Price Index (PPI) excluding food and energy sectors, could introduce further volatility into the NZDUSD exchange rate. If the CPI and PPI data showcase stronger-than-expected inflationary pressures, it might reinforce expectations of a tighter monetary policy by the Federal Reserve, possibly leading to a stronger USD and adding downward pressure on NZDUSD. Conversely, any signs of easing inflation could lift the New Zealand dollar relative to the U.S. dollar, albeit to a limited degree given current market dynamics and recent data releases.
From X (Twitter)
Latest release: Building activity down 3.2 percent in September 2024 quarter.https://t.co/uIStab9daM pic.twitter.com/jHiYoArLKm
— Stats NZ (@Stats_NZ) December 4, 2024
What can we expect from NZDUSD for the new week and what happened on Friday?
NZDUSD on Friday dropped -0.86% to 0.58. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2024-12-06, the pair dropped -1.26% or -74.6 pips lower.
Looking ahead, NZDUSD looks mixed as the pair is likely to consolidate above week low of 0.58.
For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 0.59 or at least consolidates above Weekly Pivot level of 0.59. On the downside, we are looking at week low 0.58 or 0.58 (WS1) as immediate support level. NZDUSD need to break on either side to indicate a short-term bias. A close below week low of 0.58 would indicate selling pressure.
For the month of December, NZDUSD is down by -1.09% or -64.5 pips lower.
Weekly key levels to watch out:
| R3 | 0.60 |
| R2 | 0.59 |
| R1 | 0.59 |
| Weekly Pivot | 0.59 |
| S1 | 0.58 |
| S2 | 0.58 |
| S3 | 0.57 |
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