Nzdusd falls slightly as u.s. housing data presents mixed signals

NZDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.05%	-3 Pips
Week to-date	-0.16%	-9 Pips
March	2.22%	124.3 Pips

Upcoming key events (London Time)

Thu 12:30 PM USD GDP annual rate

What happened lately

In the United States, February marked a 1.8% increase in new-home sales, overcoming a challenging January where sales had initially declined by -6.9%, a figure which itself was later adjusted from an even poorer estimate of -10.5%. This rebound indicates a potential strengthening in the housing sector, reflecting improved buyer confidence and possibly a recovery in economic conditions or consumer sentiment. However, on a less optimistic note, the House Price Index for January saw a decline, dropping to a 0.2% increase from a 0.5% gain in the previous month. This decrease follows a revision of December’s figures and suggests that while home sales may be recovering, the prices buyers are willing to pay are not rising as rapidly, hinting at a potential cooling in housing market demand or price correction dynamics.

This mixed data from the U.S. housing sector will likely have an impact on the NZDUSD currency pair. The slight increase in new-home sales showcases some economic resilience which could bolster the USD, but the slowing house price inflation may offset this with signals of a broader economic tempering. Currently, NZDUSD has seen a minor drop, slipping by 0.05% to 0.57220, and appears to be in a consolidation phase, which reflects market hesitance and the balancing of mixed economic signals. Traders might adopt a wait-and-see approach, especially with a high-impact U.S. GDP annual rate release scheduled for Thursday, which could introduce significant volatility depending on how it aligns with expectations. Investors will scrutinize these upcoming U.S. economic releases for clearer cues, potentially leading to more directional movement in NZDUSD. If the GDP data reveals robust economic activity, this could further strengthen the USD against the NZD, whereas any disappointing figures might lend support to the New Zealand dollar.

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What can we expect from NZDUSD today?

NZDUSD on Tuesday dropped -0.05% to 0.57220. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.5719 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.57273 or trades above daily pivot 0.57231. Break above could target R1 at 0.57262. While to the downside, we are looking at 0.5719 (S1) and daily low of 0.57201 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.57201 would indicate selling pressure.

For the week to-date, take note that NZDUSD is bearish as the pair posted lower by -0.16%.

Key levels to watch out:

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