NZDUSD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.81% | -47.3 Pips |  |
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| Week to-date | -1.29% | -75.4 Pips | |
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| December | -2.26% | -133 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, several economic indicators were reported, reflecting mixed economic conditions. The Bureau of the Fiscal Service reported a significant rise in the U.S. Monthly Treasury Budget deficit, which expanded to -$367 billion in November from -$257 billion in October. This widening deficit signals increased government spending or reduced fiscal receipts. Concurrently, the Bureau of Labor Statistics released data on the Consumer Price Index (CPI), which showed that the inflation rate, excluding food and energy, held steady at 0.3% month-over-month in November, consistent with October’s figure. However, the overall CPI inflation rate nudged slightly higher, increasing to 0.3% from 0.2% month-over-month. Over a 12-month period, the core inflation rate remained constant at 3.3%, while the overall CPI inflation rate observed a slight uptick to 2.7% from 2.6% in October. These figures indicate persistent inflation pressures within the economy, albeit at mild levels.
The economic data from the United States could exert downward pressure on the NZDUSD exchange rate. The rising U.S. Treasury Budget deficit may weigh on the dollar as fiscal sustainability concerns come into focus. However, steady core inflation and slight increases in the overall inflation rate suggest a relatively stable monetary policy outlook, which might support the dollar slightly. The lack of significant upcoming events means market participants may focus on existing data, trade flows, and external news that could influence sentiment. The drop in NZDUSD by -0.81% to 0.57626 indicates a stronger dollar yesterday, likely influenced by both fiscal and inflation dynamics reflected in recent data. Nonetheless, continued attention during the session will be essential to discern any corrective movements or continuations influenced by broader economic trends.
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What can we expect from NZDUSD today?
NZDUSD on Thursday dropped -0.81% to 0.57626. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for NZDUSD looks bearish as the pair posted lower in Thursday trading session.
Looking ahead for the day, immediate support level is at S1 0.57425 with break below could see further selling pressure towards S2 at 0.57223. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.58174 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.57598 would indicate selling pressure.
For the week to-date, take note that NZDUSD is bearish as the pair posted lower by -1.29%.
Key levels to watch out:
| R3 | 0.58577 |
| R2 | 0.58375 |
| R1 | 0.58001 |
| Daily Pivot | 0.57799 |
| S1 | 0.57425 |
| S2 | 0.57223 |
| S3 | 0.56849 |
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