NZD/USD extends its losses to near 0.6100 as risk aversion emerges

Source Fxstreet
May 30, 2024 08:46
  • NZD/USD extends its losing streak following the NZ Yearly Budget on Thursday.
  • New Zealand Treasury sees inflation falling to below 3% in Q3.
  • The lower US Treasury yields put pressure on the US Dollar, limiting the downside of the pair.

NZD/USD continues its losing streak for the third consecutive day on Thursday. The pair trades around 0.6100 during European hours, following the release of the Yearly Budget by the New Zealand Treasury. According to the official transcript from the New Zealand Government's website (www.beehive.govt.nz), Finance Minister Nicola Willis stated that Budget 2024 outlines the Government’s plan to rebuild the economy, ease the cost of living, improve health and education services, and restore law and order.

New Zealand Government endures savings of $23 billion over four years to responsibly fund tax relief and provide an additional boost to priority frontline services. A $7 billion boost to capital funding, via a top-up to the Multi-Year Capital Allowance, so we can invest in the infrastructure needed for future growth and resilience.

New Zealand Finance Minister Nicola Willis stated that the Treasury sees inflation falling to below 3% in Q3 and easing to 2% around 2026. The New Zealand treasury sees NZ GDP contracting in H1 2024, and growth in H2 2024.

On USD’s front, the hawkish remarks from US Federal Reserve (Fed) officials have heightened concerns about potential rate hikes, fueling risk aversion sentiment. This supported the US Dollar (USD), undermining the NZD/USD pair.

However, the downward correction in the US Treasury yields put pressure on the US Dollar, limiting the losses of the NZD/USD pair. Traders await the release of US Gross Domestic Product Annualized (Q1) data on Thursday and the Core Personal Consumption Expenditures (PCE) Price Index data on Friday.

NZD/USD

Overview
Today last price 0.6101
Today Daily Change -0.0015
Today Daily Change % -0.25
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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