NZDUSD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.07% | -4.2 Pips |  |
||
| Week to-date | 0.95% | 56.7 Pips |  |
||
| May | 1.12% | 66.4 Pips |  |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the Federal Reserve’s decision to keep the Federal Funds Rate unchanged at 4.5% reflects the central bank’s assessment of economic conditions and their stance on monetary policy stability. This action suggests that the Federal Reserve is maintaining a cautious approach to avoid destabilizing the economy, keeping interest rates steady amid global economic uncertainties and domestic inflation challenges.
In New Zealand, the economic data for the first quarter shows mixed results. Employment Change saw a slight increase of 0.1%, recovering from a previous decline of 0.2%. This improvement indicates a moderate strengthening of the job market, potentially boosting consumer spending power. However, the unemployment rate remained steady at 5.1%, indicating that the labor market has not significantly improved in terms of reducing joblessness. The Labour Force Participation Rate experienced a marginal decrease to 70.8% from 71%, which might suggest a slight retrenchment in workforce engagement. Similarly, the Labour Cost Index fell to 0.4% from 0.6%, reflecting decreased wage growth pressures in the economy and potentially limiting consumer purchasing power.
Regarding the NZDUSD exchange rate, the slight decline of 0.07% to 0.60010 signifies a consolidation phase for the currency pair. The mixed economic data from New Zealand provides little impetus for a strong upward movement in the NZD against the USD. The steady Federal Reserve rate and cautious economic outlook further constrain the potential for significant forex fluctuations. With no major market events on the horizon, the currency pair may continue to trade within a narrow range until more definitive economic signals emerge. This stability suggests that traders might anticipate limited volatility in the short term, focusing on future developments that could influence the USD or NZD strength, such as changes in global economic conditions or significant geopolitical occurrences.
Latest from X (Twitter)
What can we expect from NZDUSD today?
NZDUSD on Wednesday dropped -0.07% to 0.60010. 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 0.59853 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.60226 or trades above daily pivot 0.60039. Break above could target R1 at 0.60197. While to the downside, we are looking at 0.59853 (S1) and daily low of 0.59882 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.59882 would indicate selling pressure.
For the week to-date, take note that NZDUSD is bullish as the pair continued to trade higher and is up by 0.95% over the past few days.
Key levels to watch out:
| R3 | 0.60541 |
| R2 | 0.60383 |
| R1 | 0.60197 |
| Daily Pivot | 0.60039 |
| S1 | 0.59853 |
| S2 | 0.59695 |
| S3 | 0.59509 |
#NZDUSD Trending on Twitter
[custom-twitter-feeds hashtag=”#NZDUSD” num=3 showheader=false]