- US Non-Manufacturing PMI surprised to the upside, weighing on NZD/USD.
- An absent agenda in New Zealand would keep the NZD leaning in investor sentiment.
- NZD/USD Price Analysis: Trending up, but a pullback to the 200 DMA is on the cards.
The New Zealand dollar (NZD) It pulls back from three-month highs around 0.6442 against the US dollar (USD) after the release of positive US economic data, despite last week’s dovish speech by Federal Reserve Chairman Jerome Powell. Therefore, the NZD/USD is trading at 0.6317, losing 1.33% from its opening price.
Sentiment remains sour after good US data.
US stocks remain depressed as sentiment has soured. The Institute for Supply Management (ISM) reported that the November Non-Manufacturing PMI beat expectations and estimates of 53.3, standing at 56.5, while showing that the price index sub-component added to inflationary pressures. in the US At the same time, US factor orders for November rose 1%, versus the consensus of 0.7%, above the September data.
On the other hand, the president of the Federal Reserve (Fed), Jerome Powell, in his speech last week in which he affirmed that the moderation of the rises in interest rates could take place as soon as December, plunged the dollar. . However, last Friday’s US Non-Farm Payrolls report cemented the case for further action by the Federal Reserve. The US economy added 263,000 new jobs, topping consensus of 200,000, while Median Hourly Earnings rose 5.1% YoY, above forecasts of 4.9%.
On the New Zealand front, the lack of economic data released during the week, with only the release of Retail Electronic Card Spending and Manufacturing Sales, would weigh on US dollar dynamics and market sentiment.
NZD/USD Price Analysis: Technical Perspective
The daily chart of NZD/USD shows the major currency with a bullish bias as long as it holds above the 200 day EMA at 0.6234. In fact, the price action is recording a series of rolling highs, while the Rate of Change (RoC) did not, opening the door for a correction. At the same time, the Relative Strength Index (RSI) has broken out of overbought conditions, suggesting that buying pressure is fading.
NZD/USD key support levels are found at 0.6300, followed by the 200 day EMA at 0.6234 and the 0.6200 figure. On the other hand, the first resistance of the NZD/USD would be 0.6400, followed by 0.6442, before the psychological level of 0.6300.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
