Nzdusd rises as market awaits key US economic data releases

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.29%	17.1 Pips
Week to-date	0.2%	12 Pips
April	5.16%	293.2 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

In the upcoming week, key economic data releases from the United States are expected to capture the market’s attention. On Wednesday, the Personal Consumption Expenditures (PCE) Price Index, excluding food and energy, is set to be announced. This indicator is closely watched by the Federal Reserve as it provides insights into inflation trends. A higher-than-expected figure could indicate stronger inflationary pressures, potentially leading to a continuation of restrictive monetary policy. Additionally, the Gross Domestic Product (GDP) annual rate will be released. This data will offer a gauge of the overall economic health and growth prospects of the US economy. Both of these high-impact reports could substantially influence market sentiment and trading behavior.

With the NZDUSD currency pair being highly sensitive to economic developments in the US, these upcoming data releases could impart significant volatility to the pair. The 0.29% rise in NZDUSD on Monday reflects a period of consolidation and cautious trading as market participants await these pivotal reports. Should the US economic data surprise to the upside, indicating stronger inflation or robust economic growth, the US dollar could strengthen, potentially pushing the NZDUSD pair lower. Conversely, if the data disappoints, it could weigh on the US dollar, allowing the New Zealand dollar to gain further ground against its American counterpart. Market participants will closely analyze the results of these releases to gauge the future trajectory of the Federal Reserve’s monetary policy and its subsequent impact on the currency markets.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.29% to 0.59761. 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 0.5942 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.59821 or trades above daily pivot 0.5962. Break above could target R1 at 0.59962. While to the downside, we are looking at 0.5942 (S1) and daily low of 0.59279 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.59821 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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