NZDUSD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.51% | -31.9 Pips |  |
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| Week to-date | -2.1% | -133.3 Pips | |
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| October | -2.03% | -128.8 Pips |  |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
In August, the United States witnessed a reduction in new orders for manufactured goods by 0.2%, which is a notable change from the revised increase of 4.9% observed in July. This data, reported by the Census Bureau, suggests a modest slowdown in the manufacturing sector. The dip in new manufacturing orders can reflect reduced demand or potential caution in production due to various economic factors, such as inflation pressures or supply chain issues. Furthermore, labor market data indicated an increase in initial unemployment insurance claims to 225,000 for the week ending on 28 September, as per the Department of Labor. This rise from the previous figure of 219,000, which was revised up from 218,000, may hint at some softening in the labor market. However, despite this increase, the overall numbers remain relatively low, suggesting that the labor market still maintains resilience.
NZDUSD, the currency pair representing the New Zealand dollar against the U.S. dollar, fell by 0.51% to 0.62165 on Thursday. This decline could be attributed to the combination of economic data suggesting a potential cooling in the U.S. economic activity, as evidenced by the manufacturing and unemployment claims figures. These economic signals, indicating some level of uncertainty or slowdown, may have strengthened the U.S. dollar relative to its counterparts as investors sought the perceived safety of the dollar amidst economic ambiguity. Consequently, this led to a depreciation of the New Zealand dollar against the U.S. dollar.
Looking forward, the impact of these economic figures on the NZDUSD may also be shaped by upcoming events, including the high-impact USD Nonfarm Payroll Employment report. This report can significantly influence financial markets by providing insights into the U.S. employment situation. Should the report indicate a stronger-than-expected labor market, it might bolster the U.S. dollar further, potentially leading to continued downward pressure on NZDUSD. Conversely, weaker-than-forecast employment data could temper some of the dollar’s recent strengthening, potentially providing some support to the New Zealand dollar against the U.S. dollar. Investors will be keenly anticipating this report, recognizing its potential to sway market sentiment and currency valuations.
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What can we expect from NZDUSD today?
NZDUSD on Thursday dropped -0.51% to 0.62165. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for NZDUSD looks bearish as the pair posted lower in Thursday trading session.
Looking ahead for the day, immediate support level is at S1 0.61949 with break below could see further selling pressure towards S2 at 0.61734. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.62620 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.62069 would indicate selling pressure.
For the week to-date, take note that NZDUSD is bearish as the pair posted lower by -2.1%.
Key levels to watch out:
| R3 | 0.63051 |
| R2 | 0.62836 |
| R1 | 0.625 |
| Daily Pivot | 0.62285 |
| S1 | 0.61949 |
| S2 | 0.61734 |
| S3 | 0.61398 |
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