Nzdusd sees slight drop amid mixed economic signals from New Zealand and U.S.

NZDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.1%	-5.8 Pips
Week to-date	0.04%	2.3 Pips
April	0.62%	35.3 Pips

Upcoming key events (London Time)

Wed 08:00 PM USD US Liberation Day Tariff Announcements

What happened lately

In New Zealand, the building consents for new dwellings saw a slight decline in February, falling to 0.7% compared to 2.6% recorded in January, as reported by Stats NZ. This decrease suggests a slowdown in construction activity, which could indicate weaker demand in the housing sector or potential supply chain issues affecting the industry’s growth. This trend might have broader implications for the New Zealand economy, potentially impacting employment and GDP growth rates if the construction sector does not rebound.

In the United States, the labor market showed signs of cooling as the U.S. Job Openings and Labor Turnover Survey (JOLTS) reported a decrease in job openings to 7.568 million in February from the revised January figure of 7.74 million, according to the Bureau of Labor Statistics. This decline might suggest that businesses are becoming more cautious in hiring amid economic uncertainties. However, a contrasting signal emerged from the Chicago Purchasing Managers’ Index, which rose to 47.6 points in March from 45.5 points in February, indicating improving business conditions and potentially accelerating economic activity in the manufacturing sector.

The recent economic developments in New Zealand and the United States have implications for the NZDUSD currency pair, which dropped by 0.1% to 0.56720 on Tuesday. The weakness in New Zealand’s building consents could weigh on the Kiwi dollar due to concerns about economic momentum. In contrast, the mixed signals from the U.S. economy present a rather complex scenario. The decrease in job openings suggests caution, while the increase in the Purchasing Managers’ Index points to growing confidence in the manufacturing sector. Traders might focus on upcoming high-impact events such as the U.S. Liberation Day Tariff Announcements to gauge further directional cues for the NZDUSD pair. If tariffs are adjusted in a way that affects trade dynamics significantly, it could lead to increased volatility, influencing the pair’s future movements. Overall, given the current data, the NZDUSD pair remains in a consolidation phase until clearer trends emerge from forthcoming economic releases and policy announcements.

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What can we expect from NZDUSD today?

NZDUSD on Tuesday dropped -0.1% to 0.56720. 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 0.56668 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.56783 or trades above daily pivot 0.56726. Break above could target R1 at 0.56777. While to the downside, we are looking at 0.56668 (S1) and daily low of 0.56674 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.56674 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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