Nzdusd rises as New Zealand’s building consents and business confidence improve

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.58%	35.3 Pips
Week to-date	0.63%	38 Pips
June	0.04%	2.7 Pips

Upcoming key events (London Time)

Tue 02:30 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

In May 2025, New Zealand experienced a notable rebound in building consents for new dwellings, which rose by a seasonally adjusted 10.4%, a significant improvement from the revised -14.6% decrease in April. This positive momentum in the construction sector signifies a potential recovery in domestic economic activity, showcasing renewed confidence in the housing market. Simultaneously, New Zealand’s NZIER Business Confidence index for the second quarter of 2025 increased to 22% from 19% in the first quarter. This increase reflects an improved outlook among businesses regarding the domestic economy and future prospects, suggesting that firms are more optimistic about the economic environment and their ability to expand or invest.

The rise in both building consents and business confidence is likely to have a positive impact on the New Zealand dollar (NZD). The 0.58% rise in the NZDUSD currency pair to 0.60913 at the start of the week, coupled with a small gain by the end of June, signals growing investor sentiment and demand for the NZD. These favorable economic indicators may further bolster the currency as they reflect underlying strength in the domestic economy. However, traders and investors will be keenly watching the upcoming speech by Federal Reserve Chair Jerome Powell for cues on U.S. monetary policy. Any hawkish comments could enhance the appeal of the USD, thereby affecting the NZDUSD pair. Nevertheless, the current positive developments in New Zealand’s economy add a layer of support to the NZD, potentially mitigating any downside pressures stemming from U.S. economic announcements.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.58% to 0.60913. Price is above 9-Day EMA while Stochastic is rising in overbought zone.

Updated daily direction for NZDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.61087 with break above could target R2 at 0.61262 or figure level area. While towards the downside, we are looking at daily low of 0.60544 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.60990 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 0.63% over the past few days.

NZDUSD ended month of June trading session up by 0.04% or 2.7 pips higher.

Key levels to watch out:

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