Nzdusd rises amid consolidation with focus on Powell’s testimony

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.2%	11.9 Pips
Week to-date	0.57%	34 Pips
June	0.65%	39 Pips

Upcoming key events (London Time)

Tue 03:00 PM USD Federal Reserve Chair Jerome Powell testifies

What happened lately

As of Monday, there are no significant economic events or releases that are impacting market movements directly. However, traders should note the upcoming event for the United States. Federal Reserve Chair Jerome Powell is scheduled to testify on Tuesday at 03:00 PM (presumably Eastern Time). This high-impact event often garners significant attention as Powell’s statements can provide insights into future monetary policy directions and economic outlooks. Market participants should remain vigilant as his testimony could influence market sentiment and cause fluctuations in currency pairs, including NZDUSD.

In terms of current market movements, the NZDUSD pair showed a slight upward trend on Monday, increasing by 0.2% to a level of 0.59719. The pair continues to remain in a consolidation phase, with no major breakouts or directional moves, reflecting a period of relative calm in the forex market. The lack of major economic news today contributes to this trend, as traders may be awaiting clearer signals from upcoming economic events or data releases.

The anticipated testimony from Federal Reserve Chair Powell could significantly impact the NZDUSD pair. If Powell hints at continued hawkish monetary policy or signals unexpected changes to interest rates or economic projections, it could lead to a strengthening of the USD against the NZD, potentially causing the NZDUSD pair to decline. Conversely, if Powell adopts a dovish stance or provides indications of economic challenges that may slow down rate increases, the USD could weaken, allowing the NZD to gain ground. Traders and investors will be closely monitoring the testimony for cues that might affect future market positioning, and thus could see increased volatility in the pair around the event.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.2% to 0.59719. 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 0.59095 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.59804 or trades above daily pivot 0.59449. Break above could target R1 at 0.60074. While to the downside, we are looking at 0.59095 (S1) and daily low of 0.58825 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.59804 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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