Nzdusd consolidation continues ahead of key economic events from US and New Zealand

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.03%	2 Pips
Week to-date	0.12%	7 Pips
March	2.74%	153.3 Pips

Upcoming key events (London Time)

Wed 06:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Wed 06:00 PM USD FOMC Monetary Policy Statement
Wed 06:00 PM USD FOMC Economic Projections
Wed 06:00 PM USD Interest Rate Projections – 1st year
Wed 06:00 PM USD Interest Rate Projections – 2nd year
Wed 06:00 PM USD Interest Rate Projections
Wed 06:00 PM USD Interest Rate Projections – Longer
Wed 06:30 PM USD FOMC Press Conference
Wed 09:45 PM NZD GDP (3-mth)
Wed 09:45 PM NZD GDP (12-mth)

What happened lately

In the United States, a series of high-impact events are set to occur on Wednesday at 06:00 PM, potentially altering economic landscapes. The Federal Reserve will announce its Fed Interest Rate Decision, which could influence borrowing costs and consequently affect economic growth. Accompanying this will be the FOMC Monetary Policy Statement and Economic Projections, providing insight into the central bank’s view on the economy and inflation targets. Detailed projections on interest rates over the first, second year, and longer term will inform markets about the Fed’s anticipated policy path. This high concentration of pivotal reports culminates with the FOMC Press Conference at 06:30 PM, where any deviation in tone or outlook from Fed officials might signal changes in monetary policy stances or future economic strategies.

For New Zealand, high-impact economic reports are due late on Wednesday evening at 09:45 PM, covering GDP statistics over both the short (3-month) and long (12-month) terms. These reports will deliver comprehensive insights into New Zealand’s economic health, measuring the country’s economic growth and providing context for future financial policy adjustments. Positive GDP figures could reinforce confidence in economic stability, while disappointing results might prompt reassessments of monetary policy by the Reserve Bank of New Zealand.

The NZDUSD pair has seen a modest climb, rising by 0.03% to 0.57460 on Monday, yet it remains in a phase of consolidation. The imminent release of significant data from both the US and New Zealand will likely affect market sentiments and consequently, the currency pair’s movement. The US Fed’s decisions and projections have the potential to dominate market focus, with implications for risk appetite and global interest rate expectations. Should the market respond optimistically to the Fed’s announcements, or perceive a dovish tilt in policy, the USD could weaken, potentially strengthening the NZDUSD pair further. Conversely, if GDP figures from New Zealand outperform expectations, it may bolster the New Zealand dollar, providing additional upward momentum for the NZDUSD pair.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.03% to 0.57460. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.57387 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.57626 or trades above daily pivot 0.57506. Break above could target R1 at 0.5758. While to the downside, we are looking at 0.57387 (S1) and daily low of 0.57433 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.57626 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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