NZD/USD drifts into the low side ahead of NZ 2024 budget release

Source Fxstreet
May 30, 2024 00:48
  • New Zealand prepares for the latest NZ government budget announcement.
  • NZ’s Fiscal Strategy Report will release alongside NZ’s updated budget.
  • Investors will keep an eye out for key US data to cap off the trading week.

NZD/USD is on the soft side as markets pivot to Thursday’s early Pacific trading session, with the pair drifting into the 0.6100 region as the New Zealand government prepares to release its budget outline for the 2024 fiscal year alongside an updated Fiscal Strategy Report. New Zealand’s budget outline for 2024 will be announced by Minister of Finance Hon. Nicola Willis around 02:00 GMT.

According to analysts from Goldman Sachs, the NZD has been bolstered by a recent rise in dairy prices, but things could turn sour for the Kiwi if traders poke holes in the NZ government budget for 2024. Thursday’s joint budget and Financial Strategy Report follow up on the Budget Policy Statement for 2024 released in March.

Economic Indicator

Budget Release

Yearly New Zealand Bugdet Release is published by New Zealand Treasury.

Read more.

Next release: Thu May 30, 2024 02:00

Frequency: Irregular

Consensus: -

Previous: -

Source:

Looking ahead, Reserve Bank of New Zealand (RBNZ) Governor Orr will appear early Friday, and broader markets will pivot to face key US Gross Domestic Product (GDP) growth figures and US Personal Consumption Expenditures (PCE) Price Index inflation.

US Annualized Q1 GDP, slated for Thursday, is forecast to ease to 1.3% versus the previous print of 1.6%, and Core PCE Price Index inflation on Friday is expected to hold steady at 0.3% MoM in April. With investors desperate for signs of future rate cuts from the Federal Reserve (Fed), investors will be looking for signs of further easing in the US economy and cooling inflation figures. 

According to the CME’s FedWatch Tool, rate markets are pricing in slightly-worse-than-even odds of at least a quarter-point Fed rate trim in September, down sharply from the 70% odds that were priced in a week and a half ago. With the US economy still outperforming expectations, a still-tight labor market, and inflation still running hotter for longer than expected, rate-cut-hungry investors are hoping for signs of economic underperformance to bolster chances of at least two rate cuts in 2024 from the Fed.

NZD/USD technical outlook

NZD/USD is trading down in the early Thursday market session, drifting towards the 0.6100 handle as broad-market Greeback strength forces down the Kiwi. The pair is heading lower for a third consecutive trading day, and bearish momentum will drag NZD/USD into the 200-day Exponential Moving Average (EMA) at 0.6077.

Despite near-term bearishness, the pair is still trading up from the last swing low into 0.5850 in April, and it’s buyers’ game to lose with the pair making little progress on the high side of key technical levels.

NZD/USD hourly chart

NZD/USD daily chart

NZD/USD

Overview
Today last price 0.6109
Today Daily Change -0.0007
Today Daily Change % -0.11
Today daily open 0.6116
 
Trends
Daily SMA20 0.6069
Daily SMA50 0.6007
Daily SMA100 0.6067
Daily SMA200 0.6046
 
Levels
Previous Daily High 0.6151
Previous Daily Low 0.6111
Previous Weekly High 0.6153
Previous Weekly Low 0.6083
Previous Monthly High 0.6079
Previous Monthly Low 0.5851
Daily Fibonacci 38.2% 0.6126
Daily Fibonacci 61.8% 0.6136
Daily Pivot Point S1 0.6101
Daily Pivot Point S2 0.6086
Daily Pivot Point S3 0.6061
Daily Pivot Point R1 0.6141
Daily Pivot Point R2 0.6166
Daily Pivot Point R3 0.6181

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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