NZDUSD on Friday dropped -0.48% to 0.61560. Week ending 2024-09-13 moved lower by -0.25%. What happened.

NZDUSD Analysis

Performance
Period	Pct	Chg	Momentum
Friday	-0.48%	-29.4 Pips
Week 2024-09-13	-0.25%	-15.3 Pips
September	-1.71%	-107.3 Pips

Upcoming key events for the new week (London Time)

Tue 01:30 PM Monthly Retail Trade (1-mth)
Wed 07:00 PM Fed Interest Rate Decision (Federal Funds Rate)
Wed 07:00 PM Interest Rate Projections
Wed 11:45 PM GDP (3-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims

What happened over the week

In the United States, the Index of Consumer Sentiment for September increased slightly to 69 points from 67.9 points in August, according to the University of Michigan. Initial Unemployment Insurance Claims for the week ending September 7 rose to 230,000, up from the previous figure of 228,000 as per the Department of Labor. The Producer Price Index (PPI) over a 12-month period in August decreased to 1.7% from 2.2% in July, while the one-month PPI for August ticked up to 0.2% from 0.1% in July, reported by the Bureau of Labor Statistics. Consumer Price Index (CPI) inflation for August remained unchanged at 0.2% month-over-month, but on a year-over-year basis, it decreased to 2.5% from 2.9% in July, also noted by the Bureau of Labor Statistics.

The recent economic data from the United States points to mixed signals regarding inflationary pressures and labor market stability. The slight increase in consumer sentiment and the stable month-over-month CPI suggest a relatively stable economic environment. However, the rise in unemployment claims and the year-over-year dip in both CPI and PPI indicate potential softness in the economy.

The NZDUSD currency pair dropped by 0.48% to 0.61560 on Friday and moved lower by 0.25% over the week ending September 13, 2024. The mixed U.S. economic data did not provide strong support for the USD, yet the decline in the pair suggests investors might have been concerned about the U.S. Federal Reserve’s upcoming interest rate decision and projections, scheduled for next week. These events, along with significant U.S. economic indicators such as Monthly Retail Trade data and Initial Unemployment Claims, alongside New Zealand’s GDP report, are highly anticipated. Volatility is expected around these announcements as they could provide clearer insights into future monetary policy, potentially affecting the NZDUSD pair further.

From X (Twitter)

Latest release: Food prices increase 0.4 percent annually.https://t.co/RpLuAPmwVd pic.twitter.com/23pxLgKBWP

— Stats NZ (@Stats_NZ) September 11, 2024

What can we expect from NZDUSD for the new week and what happened on Friday?

NZDUSD on Friday dropped -0.48% to 0.62. Price is below 9-Day EMA while Stochastic is rising. For the week ending 2024-09-13, the pair dropped -0.25% or -15.3 pips lower.

Looking ahead, NZDUSD looks bearish as the pair posted lower in Friday trading session.

For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 0.62 or at least consolidates above Weekly Pivot level of 0.62. On the downside, we are looking at week low 0.61 or 0.61 (WS1) as immediate support level. NZDUSD need to break on either side to indicate a short-term bias. A close below week low of 0.61 would indicate selling pressure.

For the month of September, NZDUSD is down by -1.71% or -107.3 pips lower.

Weekly key levels to watch out:

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