Nzdusd sees slight drop amid consolidation phase as us manufacturing orders rise

NZDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.05%	-3 Pips
Week to-date	1.11%	62.3 Pips
March	1.11%	62.3 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (12-mth)

What happened lately

In the United States, new orders for manufactured goods rose by 1.7% in January, showing a recovery from the revised figure of -0.6% in December. This data, reported by the Census Bureau, signals a positive turn for the U.S. manufacturing sector, which is a crucial component of the economy. The increase in new orders suggests growing demand and may lead to greater production and economic activity in the coming months. This uptick can be considered a sign of economic resilience and could influence the Federal Reserve’s future monetary policy considerations.

Regarding the NZDUSD currency pair, it experienced a slight decline of -0.05% on Wednesday, closing at 0.56610. The pair seems to be in a consolidation phase, where traders are evaluating upcoming economic data to gauge future market movements. Key economic events on the horizon include the U.S. nonfarm payroll employment and average hourly earnings reports, both scheduled for release on Friday. These high-impact events tend to create volatility in the currency markets as they are strong indicators of economic health and labor market conditions.

The rise in U.S. manufacturing orders suggests a strengthening U.S. economy, which could result in a stronger dollar, potentially applying downward pressure on the NZDUSD pair. If the Friday employment data also supports a robust labor market, this could further bolster the USD, adding additional pressure on the NZD. Traders will likely be cautious, keeping a close watch on these indicators to forecast potential market reactions and adjust their positions accordingly. Hence, the NZDUSD may experience increased volatility in response to these data releases, with the potential for further depreciation if the dollar strengthens on robust economic performance.

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What can we expect from NZDUSD today?

NZDUSD on Wednesday dropped -0.05% to 0.56610. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.56473 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.56690 or trades above daily pivot 0.56581. Break above could target R1 at 0.56719. While to the downside, we are looking at 0.56473 (S1) and daily low of 0.56444 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.56444 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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