NZDUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.12% | 7.2 Pips |  |
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| Week to-date | 1.38% | 79 Pips |  |
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| March | 4.02% | 225.3 Pips | |
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Upcoming key events (London Time)
Wed 06:00 PM USD Fed Interest Rate Decision (Federal Funds Rate) Wed 06:00 PM USD FOMC Economic Projections Wed 06:00 PM USD Interest Rate Projections
Wed 09:45 PM NZD GDP (3-mth)
What happened lately
The United States is set to release a series of significant economic indicators that could influence market movements. Among these are the Federal Reserve’s Interest Rate Decision, FOMC Economic Projections, and Interest Rate Projections, all scheduled for Wednesday at 06:00 PM. These announcements are highly anticipated as they provide insights into the Fed’s monetary policy stance and economic outlook. Any unexpected changes or guidance in interest rates or projections could lead to volatility in the USD, with potential ripple effects across global currency markets.
In New Zealand, the Gross Domestic Product (GDP) for the last three months will be announced on the same day at 09:45 PM. As a high-impact economic indicator, the GDP figures are crucial for assessing New Zealand’s economic health and growth prospects. A strong GDP could boost investor confidence in the NZD, while a weaker-than-expected number might lead to capital outflows, affecting currency valuation adversely.
Currently, the NZDUSD pair is experiencing a consolidation phase, climbing 0.12% to 0.58230 on Tuesday. The upcoming economic data from both the US and New Zealand will play a crucial role in shaping the pair’s trajectory. If the Federal Reserve’s announcements suggest an aggressive stance with rate hikes due to inflation concerns, the USD might strengthen, potentially weakening NZDUSD. Conversely, if there’s a dovish tone implying rate cuts or unchanged rates, the USD could weaken, possibly benefiting NZDUSD.
Additionally, the market’s response to New Zealand’s GDP figures will be significant. A robust GDP report may enhance the NZD’s strength against the USD, pushing the NZDUSD pair higher. However, if the GDP underperforms, it could add downward pressure on the NZD, complicating its position against the USD. Traders and investors will closely monitor these developments, as the combined impact of these announcements could ultimately disrupt the current consolidation phase and prompt a more defined directional movement in the NZDUSD trading pair.
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What can we expect from NZDUSD today?
NZDUSD on Tuesday rose 0.12% to 0.58230. 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 0.58167 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.58271 or trades above daily pivot 0.58219. Break above could target R1 at 0.58282. While to the downside, we are looking at 0.58167 (S1) and daily low of 0.58156 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.58271 may suggest continuation after recent positive movement.
For the week to-date, take note that NZDUSD is bullish as the pair continued to trade higher and is up by 1.38% over the past few days.
Key levels to watch out:
| R3 | 0.58397 |
| R2 | 0.58334 |
| R1 | 0.58282 |
| Daily Pivot | 0.58219 |
| S1 | 0.58167 |
| S2 | 0.58104 |
| S3 | 0.58052 |
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