NZD/USD Price Analysis: Extends winning spell to 0.5960

Source Fxstreet
Apr 25, 2024 11:10
  • NZD/USD rises to 0.5960 as US Dollar exhibits a weak footing ahead of US Q1 GDP data.
  • The consensus shows that the US economy expanded by 2.5% in the January-March period.
  • The New Zealand Dollar moves higher on improved demand for risk-perceived currencies.

The NZD/USD pair extends its winning streak for the fourth trading session on Thursday. The Kiwi asset movers higher to 0.5960 as the US Dollar falls further amid concerns over United States economic outlook due to a sharp decline in new business inflows in April, showed by S&P Global preliminary PMI report. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, drops to 10-day low near 105.50.

Downside move in the US Dollar has improved demand for risk-sensitive currencies. However, the market sentiment remains uncertain as investors turn attention to the preliminary US Q1 GDP data, which will be published at 12:30 GMT. The US economy is projected to have grown at a moderate pace of 2.5% against 3.4% growth witnessed in the final quarter of the last year.

Going forward, investors will also watch the US core Personal Consumption Expenditure Price Index (PCE) data for March, which is a Fed’s preferred inflation measure. The inflation measures is estimated to have grown steadily by 0.3% on a month-on-month basis. This will influence speculation for Federal reserve (Fed) rate cuts, which are currently anticipated from the September meeting.

NZD/USD trades close to the upper-end of the inventory adjustment phase in which Kiwi positions are exchanged between institutional investors and retail participants. It is difficult to designate the phase as “accumulation” or “distribution” before a decisive break. The Kiwi asset is expected to deliver a decisive move after the release of the US Q1 GDP data.

Upward-sloping 20-period Exponential Moving Average (EMA) at 0.5947 signifies a bullish near-term appeal for the New Zealand Dollar.

The 14-period Relative Strength Index (RSI) rises above 60.00, suggesting a fresh upside momentum has been triggered.

Further upside above the psychological resistance of 0.6000 will drive the asset towards April 4 high around 0.6050 and the round-level resistance of 0.6100.

On the contrary, a fresh downside would appear if the asset breaks below April 16 low at 0.5860. This would drag the asset toward 8 September 2023 low at 0.5847, followed by the round-level support of 0.5900

NZD/USD hourly chart

NZD/USD

Overview
Today last price 0.5958
Today Daily Change 0.0023
Today Daily Change % 0.39
Today daily open 0.5935
 
Trends
Daily SMA20 0.5961
Daily SMA50 0.6052
Daily SMA100 0.6117
Daily SMA200 0.605
 
Levels
Previous Daily High 0.5958
Previous Daily Low 0.592
Previous Weekly High 0.5954
Previous Weekly Low 0.5851
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.5944
Daily Fibonacci 61.8% 0.5935
Daily Pivot Point S1 0.5917
Daily Pivot Point S2 0.5899
Daily Pivot Point S3 0.5879
Daily Pivot Point R1 0.5956
Daily Pivot Point R2 0.5976
Daily Pivot Point R3 0.5994

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: US Dollar consolidates weekly gains ahead of mid-tier data releasesHere is what you need to know on Thursday, May 23: The US Dollar (USD) capitalized on the upbeat PMI data from the US on Thursday, and the USD Index closed the fourth consecutive day in positive territory.
Source  Fxstreet
Here is what you need to know on Thursday, May 23: The US Dollar (USD) capitalized on the upbeat PMI data from the US on Thursday, and the USD Index closed the fourth consecutive day in positive territory.
placeholder
AUD/USD Price Analysis: Turns volatile as US Dollar bounces back after strong US PMI reportThe AUD/USD pair retreats from the intraday high of 0.6650 in Thursday’s New York session.
Source  Fxstreet
The AUD/USD pair retreats from the intraday high of 0.6650 in Thursday’s New York session.
placeholder
NZD/USD rises toward 0.6150 after the RBNZ decides to keep OCR unchangedThe NZD/USD pair rebounded after two days of losses, trading around 0.6140 during Asian hours on Wednesday following the Reserve Bank of New Zealand's (RBNZ) interest rate decision.
Source  Fxstreet
The NZD/USD pair rebounded after two days of losses, trading around 0.6140 during Asian hours on Wednesday following the Reserve Bank of New Zealand's (RBNZ) interest rate decision.
goTop
quote