NZDUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.63% | -39.1 Pips |  |
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| Week to-date | -0.62% | -38.4 Pips | |
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| October | -3.42% | -217.3 Pips |  |
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Upcoming key events (London Time)
Wed 02:00 AM NZD RBNZ Interest Rate Decision (Official Cash Rate)
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
On Monday, the NZDUSD currency pair experienced a decline, with the New Zealand Dollar depreciating by 0.63% against the US Dollar, settling at 0.61280. This movement comes amid a period lacking significant economic news to drive market volatility. The depreciation may reflect ongoing market sentiment, possibly influenced by expectations surrounding key upcoming economic events that could impact both the New Zealand and US economies in the near future.
In New Zealand, the crucial event investors are eagerly awaiting is the RBNZ’s Interest Rate Decision, scheduled for 2:00 AM on Wednesday. The Reserve Bank of New Zealand’s decision on the Official Cash Rate is highly impactful, as any changes in this rate could significantly affect the currency’s valuation. Market participants typically look for hints in the central bank’s language about future economic outlooks, inflationary pressures, and monetary policy stance, all of which can play a vital role in determining the strength or weakness of the NZD.
On the other side of the Pacific, traders are eyeing the US Federal Reserve’s FOMC Meeting Minutes, set to be released at 7:00 PM on Wednesday. As a high-impact event, this release provides insights into the Federal Reserve’s discussions and deliberations on monetary policy, interest rate projections, and their views on economic conditions. This information can be crucial for traders speculating on future USD movements, as perceptions of a hawkish or dovish stance can lead to market volatility.
The upcoming high-impact events—the RBNZ Interest Rate Decision and the FOMC Meeting Minutes—are likely to influence the NZDUSD pairs’ future trajectory. Should the RBNZ signal confidence in the New Zealand economy with a more hawkish stance, possibly hinting at rate hikes, the NZD might find some support or appreciation against the USD. Conversely, if the FOMC minutes reveal a stronger US economic outlook with potential rate increases, it could bolster the USD against the NZD. Thus, traders and investors are positioning themselves cautiously ahead of these back-to-back significant events, with the potential for increased volatility and directional moves in the NZDUSD pair. The absence of major economic news until these events allows the markets to focus intently on the central bank decisions, making the RBNZ and FOMC releases critical to determining near-term market dynamics for the NZDUSD exchange rate. Information source: economicrecap.com.
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What can we expect from NZDUSD today?
NZDUSD on Monday dropped -0.63% to 0.61280. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for NZDUSD looks bearish as the pair posted lower in Monday trading session.
Looking ahead for the day, immediate support level is at S1 0.61036 with break below could see further selling pressure towards S2 at 0.60791. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.61695 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.61121 would indicate selling pressure.
For the week to-date, take note that NZDUSD is bearish as the pair posted lower by -0.62%.
Key levels to watch out:
| R3 | 0.62184 |
| R2 | 0.61939 |
| R1 | 0.6161 |
| Daily Pivot | 0.61365 |
| S1 | 0.61036 |
| S2 | 0.60791 |
| S3 | 0.60462 |
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