NZDUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.12% | 7.1 Pips |  |
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| Week to-date | 0.13% | 7.2 Pips | |
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| January | 0.87% | 49 Pips | |
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Upcoming key events (London Time)
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
What happened lately
In December, new-home sales in the United States witnessed an increase of 3.6%, which while reflecting growth, represents a slowdown compared to the 5.9% rise noted in November. This deceleration suggests some cooling in housing market activity, potentially due to factors such as rising interest rates or affordability issues, which might be tempering buyer enthusiasm. With the Federal Reserve’s interest rate decision looming, there is a high-impact economic event on the horizon that may further influence market dynamics.
The New Zealand Dollar to US Dollar (NZDUSD) pair experienced a slight increase of 0.12% to reach 0.56886 on Monday, indicating a scenario of consolidation amid market anticipations of upcoming economic cues. The slightly strengthening NZD could be perceived as a reflection of investor positioning ahead of potentially significant developments, particularly the Fed’s interest rate decision.
The approaching US Federal Reserve interest rate decision is a major factor likely to impact the NZDUSD. An interest rate hike by the Fed tends to strengthen the US dollar, as higher rates offer better returns on investments denominated in USD, drawing capital inflow. This could result in downward pressure on the NZDUSD pair if the Fed’s stance is more aggressive than expected. Conversely, if the Fed signals a more cautious approach, the NZD may gain relative strength, supporting the NZDUSD pair’s upward momentum. Additionally, any dovish hints in the Fed’s remarks could alleviate concerns over US economic growth slowing, thereby indirectly benefiting the NZD. Market participants will closely analyze Federal Reserve communications for indications about future monetary policy direction and its implications on the currency pair.
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What can we expect from NZDUSD today?
NZDUSD on Monday rose 0.12% to 0.56886. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.56748 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.57050 or trades above daily pivot 0.56899. Break above could target R1 at 0.57037. While to the downside, we are looking at 0.56748 (S1) and daily low of 0.56761 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.57050 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:
| R3 | 0.57326 |
| R2 | 0.57188 |
| R1 | 0.57037 |
| Daily Pivot | 0.56899 |
| S1 | 0.56748 |
| S2 | 0.5661 |
| S3 | 0.56459 |
#NZDUSD Trending on Twitter
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