Nzdusd rises amid mixed US economic data and consolidation phase

NZDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.76%	45.1 Pips
Week to-date	0.88%	52.2 Pips
April	5.5%	312.2 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, the economic data released showed mixed results. Initial unemployment insurance claims rose to 222,000 in the week ending April 19, indicating a slight softening in the labor market. Meanwhile, Nondefense Capital Goods Orders, excluding aircraft, saw a marginal increase of 0.1% in March, rebounding from a revised decline of -0.2% in February. Durable goods orders, another crucial economic indicator, presented a mixed picture. While new durable goods orders surged by 9.2% in March, markedly higher than the 1% seen in February, orders excluding transportation remained flat at 0%, a notable decrease from 0.7% the previous month. Additionally, durable goods orders excluding defense saw a significant rise, jumping by 10.4% in March from 0.8% in February, highlighting a strong demand for larger goods. Furthermore, new-home sales showcased robust growth, increasing by 7.4% in March, significantly up from the 1.8% recorded in February, reflecting a strong housing market despite rising mortgage rates.

The recent positive economic data from the U.S., particularly the impressive gains in new durable goods orders and new-home sales, suggest an underlying strength in the economy, potentially boosting investor confidence in the USD. However, the rise in unemployment claims indicates some uncertainties in the labor market, which could weigh on the dollar’s strength if the trend continues. This mix of data has led to the NZDUSD pair appreciating by 0.76% to 0.59899, likely reflecting a more risk-on sentiment in the markets where investors seek higher-yielding assets like the New Zealand dollar. The recent movements in the NZDUSD pair align with this interpretation, moving within a consolidation phase. While no major events are slated for the day, market participants are likely to monitor broader economic sentiment and upcoming data releases for any signs that could influence the pair’s direction. Overall, the U.S. economic data presents an optimistic view but with cautionary undertones, which may support further fluctuations and potential appreciation in the NZDUSD pair in the short term.

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What can we expect from NZDUSD today?

NZDUSD on Thursday rose 0.76% to 0.59899. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.59539 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.60002 or trades above daily pivot 0.5977. Break above could target R1 at 0.60131. While to the downside, we are looking at 0.59539 (S1) and daily low of 0.59410 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.60002 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 0.88% over the past few days.

Key levels to watch out:

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