Nzdusd declines as U.S. economic indicators diverge

NZDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.18%	-10.1 Pips
Week to-date	0.31%	17.5 Pips
January	-0.11%	-6.1 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes

What happened lately

In November, the United States showcased a divergent economic performance. As reported by the Bureau of Labor Statistics, job openings surged to 8.098 million, exemplifying a robust labor market and marking an increase from the previously revised October figure of 7.744 million. This suggests a significant demand for labor and potentially rising wage pressures as employers strive to fill positions. On the other hand, data from the Census Bureau indicated a decline in new orders for manufactured goods by 0.4%, a reversal from October’s upwardly revised growth of 0.5%. This contraction showcases a potential cooling in manufacturing activity, which could dampen economic growth prospects slightly. These conflicting indicators highlight both strengths in the labor market and vulnerabilities in the manufacturing sector for the U.S. economy.

The NZDUSD currency pair saw a decrease of 0.18% to 0.56336 on Tuesday. This decline may be influenced by the mixed economic signals coming from the United States. The increase in U.S. job openings suggests a strong jobs market which may support the U.S. dollar; however, the drop in manufacturing orders could temper optimism and prevent the dollar from gaining too much strength. Moreover, traders may be cautious ahead of upcoming high-impact events like the FOMC Meeting Minutes, scheduled for 7:00 PM on Wednesday. The market will closely watch these minutes for any hints on future interest rate movements, which could sway NZDUSD further. Overall, the nuanced U.S. data combined with looming Fed deliberations presents a complex backdrop for currency traders, potentially keeping the NZDUSD range-bound until more definitive guidance is obtained.

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What can we expect from NZDUSD today?

NZDUSD on Tuesday dropped -0.18% to 0.56336. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks bearish as the pair posted lower in Tuesday trading session.

Looking ahead for the day, immediate support level is at S1 0.56108 with break below could see further selling pressure towards S2 at 0.5588. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.56924 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.56288 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:

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