Nzdusd sees slight gain amid anticipation of fomc meeting minutes

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.09%	5.3 Pips
Week to-date	0.34%	19.3 Pips
January	0.01%	0.7 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes

What happened lately

In the United States, the manufacturing sector experienced a decline in new orders for manufactured goods, as reported by the Census Bureau. The orders decreased by 0.4% in November, following an upward revision of October’s data, which initially showed a modest increase of 0.2% but was later adjusted to a 0.5% rise. This downward trend in new orders raises concerns about potential slowing in the industrial sector and may indicate weakening demand or caution amongst manufacturers amidst broader economic uncertainties.

In terms of foreign exchange markets, the NZDUSD pair saw a marginal increase on Monday, with a rise of 0.09% reaching a level of 0.56404. This gain comes ahead of significant economic announcements, including the upcoming release of the U.S. Federal Open Market Committee (FOMC) Meeting Minutes. The anticipation of the FOMC Minutes is crucial, as it provides insight into the Federal Reserve’s monetary policy outlook and the potential future direction of interest rates, which can heavily influence currency markets.

The weaker-than-expected U.S. manufacturing data may weigh on the U.S. dollar, as it could signal slower economic growth, potentially encouraging the Federal Reserve to maintain a dovish stance in its upcoming policies. Conversely, any indications of continued support for tighter monetary policy in the FOMC Meeting Minutes might offset this concern, supporting the dollar. For the NZDUSD pair, the New Zealand dollar’s slight gain may be driven by these underlying uncertainties regarding U.S. economic resilience. Short-term movements will thus closely hinge on the forthcoming FOMC insights and the market’s interpretation of the details regarding the interest rate trajectory.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.09% to 0.56404. Price is above 9-Day EMA while Stochastic is rising in oversold zone.

Updated daily direction for NZDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.56788 with break above could target R2 at 0.57171 or figure level area. While towards the downside, we are looking at daily low of 0.56133 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.56844 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:

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