NZDUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.17% | -9.7 Pips |  |
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| Week to-date | -0.04% | -2.3 Pips | |
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| December | -4.25% | -250.6 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the economic landscape presented a mixed set of data for November as reported by the Census Bureau. The New-Home Sales Change saw a significant recovery, rising to 5.9% from a steep decline of -17.3% in October. This surge could suggest a strengthening housing market, potentially driven by lower borrowing costs or seasonal factors. On the contrary, the Durable Goods – New Orders saw a downturn, with figures falling by -1.1% in November compared to a slight positive revision of 0.8% in October. This decline in durable goods orders, indicative of a decrease in business spending, was noted even without the transportation sector, where orders fell by -0.1% after a 0.2% rise in October. Additionally, orders excluding defense fell to -0.3% from the previous month’s revision of 0.5%. However, a bright spot emerged with the Nondefense Capital Goods Orders excluding Aircraft, which increased by 0.7% in November, reversing a decline of -0.2% in October. This increase highlights resilience in business investment in key sectors.
The NZDUSD currency pair displayed a slight decline on Monday, dropping -0.17% to 0.56458. The consolidating pattern of this pair suggests that the market is in a state of indecision, awaiting further direction from upcoming economic events or data. The mixed economic data from the U.S. could contribute to this consolidation as investors weigh the optimistic rebound in housing sales against the backdrop of weaker durable goods orders. The lack of major economic events for the day implies that external factors, possibly geopolitical developments or broader market sentiments, might influence the pair in the short term. However, given the robust recovery in housing, the possibility of a stronger U.S. dollar could exert downward pressure on the NZD relative to the USD, influencing currency pair dynamics in the near future.
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What can we expect from NZDUSD today?
NZDUSD on Monday dropped -0.17% to 0.56458. Price is below 9-Day EMA while Stochastic is rising in oversold zone.
Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.56311 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.56610 or trades above daily pivot 0.56461. Break above could target R1 at 0.56607. While to the downside, we are looking at 0.56311 (S1) and daily low of 0.56314 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.56314 would indicate selling pressure.
For the week to-date, take note that NZDUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.56903 |
| R2 | 0.56757 |
| R1 | 0.56607 |
| Daily Pivot | 0.56461 |
| S1 | 0.56311 |
| S2 | 0.56165 |
| S3 | 0.56015 |
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