- The NZD/USD slides down despite a strong data from the New Zealand IPC and breaks a six -day winning streak.
- A modest USD rebound fails to help cash prices exceeding the level of 50% Fibonacci.
- The bullish technical configuration supports the prospects for the appearance of purchases in falls.
The NZD/USD pair goes from the neighborhood of mid -0.5900, or a new maximum of the year reached during the Asian session this Thursday, in reaction to inflation figures to the New Zealand consumer stronger than expected. Cash prices fall towards the 0.5900 neighborhood in the last hour and, for now, there seem to have broken a six -day winning streak in the middle of a modest rebound of the US dollar (USD).
In addition, the fact that the consumer price index (CPI) remained comfortably within the target range of 1-3% of the New Zealand Reserve Bank (RBNZ) during three consecutive quarters failed to change the expectations of a greater relief. This undermines the New Zealand dollar (NZD) and contributes to the fall of the NZD/USD torque from the Fibonacci recoil level of 50% of the September 2024 to April 2025.
Meanwhile, the recent rupture through the very important simple single mobile (SMA) for the first time since October 2024 was seen as a key trigger for upward operators. In addition, the oscillators in the daily chart remain comfortably in positive territory and are still far from being in the overcompra zone. This, in turn, suggests that the lower resistance path for the NZD/USD is upwards.
Therefore, any subsequent fall could still be seen as a purchase opportunity near the region of 0.5860-0.5855. This is closely followed by the 200 -day SMA, currently around the 0.5840 area, and the 0.5825 region, or the level of 38.2% of Fibonacci, which should help limit any additional fall. However, a convincing rupture below the latter could cause technical sales and drag the NZD/USD to levels below 0.5800.
On the contrary, the bulls could expect a sustained strength and acceptance above the level of 50% Fibonacci, around the 0.5930 region, before opening new positions. The NZD/USD torque could then accelerate the positive impulse towards the horizontal resistance of 0.5970 en route to the psychological level of 0.6000 and the level of 61.8% of Fibonacci, around the area of 0.6040.
NZD/USD DIARY GRAPH
New Zealand Faqs dollar
The New Zealand dollar (NZD), also known as Kiwi, is a well -known currency among investors. Its value is largely determined by the health of the neozyous economy and the policy of the country’s central bank. However, there are some peculiarities that can also make the NZD move. The evolution of the Chinese economy tends to move Kiwi because China is the largest commercial partner in New Zealand. The bad news for the Chinese economy is probably translated into less neozyous exports to the country, which will affect the economy and, therefore, its currency. Another factor that moves the NZD is the prices of dairy products, since the dairy industry is the main export of New Zealand. The high prices of dairy products boost export income, contributing positively to the economy and, therefore, to the NZD.
The New Zealand Reserve Bank (RBNZ) aspires to reach and maintain an inflation rate between 1% and 3% in the medium term, with the aim of keeping it near the midpoint of 2%. To do this, the Bank sets an adequate level of interest rates. When inflation is too high, RBNZ rises interest rates to cool the economy, but the measure will also raise bond performance, increasing the attractiveness of investors to invest in the country and thus boosting the NZD. On the contrary, lower interest rates tend to weaken the NZD. The differential type of types, or how they are or is expected to be the types in New Zealand compared to those set by the Federal Reserve of the US, can also play a key role in the NZD/USD movement.
The publication of macroeconomic data in New Zealand is key to evaluating the status of the economy and can influence the valuation of the New Zealand dollar (NZD). A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and can encourage the New Zealand reserve bank to increase interest rates, if this economic strength is accompanied by high inflation. On the contrary, if the economic data is weak, the NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during periods of appetite for risk, or when investors perceive that the general market risks are low and are optimistic about growth. This usually translates into more favorable perspectives for raw materials and the so -called “raw material currencies”, such as Kiwi. On the contrary, the NZD tends to weaken in times of turbulence in markets or economic uncertainty, since investors tend to sell the most risky assets and flee the most stable shelters.
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.
