NZDUSD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.09% | 5.3 Pips |  |
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| Week to-date | -0.04% | -2.1 Pips |  |
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| October | -5.81% | -368.4 Pips | |
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Upcoming key events (London Time)
Fri 12:30 PM USD Nonfarm Payroll Employment
What happened lately
In New Zealand, the building consents for new dwellings have shown signs of recovery, increasing by 2.6% in September from a significant drop of -5.2% in August, according to Stats NZ. This positive turnaround suggests a potential rebound in the construction sector, driven by seasonally adjusted factors that highlight growth in residential projects. This development is crucial for the housing market and may positively influence associated economic activities.
In the United States, several economic indicators were reported by the Bureau of Economic Analysis and Bureau of Labor Statistics. Personal income increased modestly by 0.3% in September, up from 0.2% in August, reflecting steady income growth. However, consumer spending, as measured by the PCE, showed a decrease. The PCE Price Index for September edged up by 0.2% monthly, although the annual rate was slightly down to 2.1% from 2.2%. The core PCE, which excludes food and energy, increased month-over-month but remained stable annually at 2.7%. The Employment Cost Index revealed a slight drop, indicating a potential cooling of wage pressures. The GDP growth rate in Q3 was lower at 2.8% compared to 3.0% in Q2, while the GDP Price Index marked a decrease. Additionally, the pending home sales showed a significant rise, providing a positive signal for the housing market.
The NZD/USD exchange rate saw a marginal increase of 0.09% to 0.59769, but overall, the dollar ended October with a notable decrease of -5.81%. The rise in New Zealand building consents could provide some support to the NZD by indicating potential economic growth. However, the mixed U.S. economic data, especially the lower-than-expected GDP figures and declining consumer spending, may not exert upward pressure on the USD, potentially balancing the exchange rate. Yet, traders may be cautious ahead of the upcoming U.S. Nonfarm Payroll Employment data, which could further influence the USD and thus impact the NZD/USD pair in the short term.
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What can we expect from NZDUSD today?
NZDUSD on Thursday rose 0.09% to 0.59769. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.59935 with break above could target R2 at 0.601 or figure level area. While towards the downside, we are looking at daily low of 0.59394 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.59830 may suggest continuation after recent positive movement.
For the week to-date, take note that NZDUSD is mixed as compared to the prior week.
NZDUSD ended month of October trading session down by -5.81% or -368.4 pips lower.
Key levels to watch out:
| R3 | 0.60371 |
| R2 | 0.601 |
| R1 | 0.59935 |
| Daily Pivot | 0.59664 |
| S1 | 0.59499 |
| S2 | 0.59228 |
| S3 | 0.59063 |
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