Created
: 2024.10.31
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
NZD/USD Price Forecast: Remains below 0.6000, upper boundary of the descending channel
World FX news
Breaking news
NZD/USD Price Forecast: Remains below 0.6000, upper boundary of the descending channel
New
2024.10.31 17:24
2024.10.31 17:24
2024.10.31 17:24
- NZD/USD may test the upper boundary of the descending channel pattern.
- A drop in the 14-day RSI below 30 mark would indicate an oversold condition, potentially suggesting an upcoming upward correction.
- The pair may aim for the lower boundary of the descending channel near the 0.5920 level.
The NZD/USD pair extends gains for the second consecutive session, trading near 0.5980 during Thursday's European session. Daily chart analysis shows a bearish bias, with the pair moving within a descending channel. A breakout above this descending channel could signal a potential shift in momentum.
Further supporting this outlook, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, reinforcing the bearish sentiment for NZD/USD. Short-term momentum appears weak, indicating continued downward pressure.
The 14-day Relative Strength Index (RSI), a key momentum indicator, hovers just above 30. A dip below this threshold would signal an oversold condition, potentially hinting at an impending upward correction for the NZD/USD pair.
On the downside, NZD/USD may approach the lower boundary of the descending channel near 0.5920. A decisive break below this support could drive the pair toward the next "pullback support" around the 0.5850 level.
On the resistance side, the initial hurdle for NZD/USD lies at the upper boundary of the descending channel, aligning with the nine-day Exponential Moving Average (EMA) near 0.6001, followed by the 14-day EMA at 0.6026. A sustained move above these EMAs could shift the pair to a short-term bullish stance, potentially targeting the psychological level of 0.6100.
NZD/USD: Daily Chart
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country's central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand's biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand's main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors' appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar's (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called 'commodity currencies' such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
Last updated
: 2024.10.31
Related articles
Mexican Peso plunges to new yearly low amid strong US Dollar
2024.11.02 07:31Australian Dollar declines after high-tier US data, Chinese worries
2024.11.02 06:40NZD/JPY Price Analysis: Mixed technical outlook with sideways movement
2024.11.02 05:49Forecasting the upcoming week: US Presidential Elections overshadows Fed's decision
2024.11.02 05:32Dow Jones Industrial Average surges on soft US NFP data, Fed easing hopes rise
2024.11.02 04:04US Dollar rebounds after NFPs and ISM PMIs
2024.11.02 04:00
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Mexican Peso plunges to new yearly low amid strong US Dollar
The Mexican Peso depreciated sharply against the Greenback on Friday and recorded new yearly highs of 20.29, above the former 20.22 peak late in the North American session, set to print weekly losses of over 1.50%.
New
2024.11.02 07:31Australian Dollar declines after high-tier US data, Chinese worries
.
New
2024.11.02 06:40NZD/JPY Price Analysis: Mixed technical outlook with sideways movement
Friday's trading saw the NZD/JPY pair continue its sideways movement of the past sessions.
New
2024.11.02 05:49Forecasting the upcoming week: US Presidential Elections overshadows Fed's decision
This past week, the US Dollar consolidated at around familiar levels, though it is set to snap four consecutive weeks of gains ahead of a busy schedule.
New
2024.11.02 05:32Dow Jones Industrial Average surges on soft US NFP data, Fed easing hopes rise
The Dow Jones Industrial Average (DJIA) posted solid gains of close to almost 300 points or 0.71% on Friday, on softer-than-expected economic data, reinforcing investors' hypothesis of further easing by the Federal Reserve.
New
2024.11.02 04:04US Dollar rebounds after NFPs and ISM PMIs
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, rebounded intraday despite the weak jobs data as annual wage inflation rose to 4%, indicating that inflationary pressures remain elevated.
New
2024.11.02 04:00Canadian Dollar mixed after US NFPs, ISM PMIs
The USD/CAD currency pair saw a mild decline in Friday's session, reaching a low of 1.3920.
New
2024.11.02 02:10GBP/USD Price Forecast: Climbs post weak US jobs report, eyes 100-day SMA
The Pound Sterling erased some of its Thursday's losses against the Greenback and rose 0.56% above its opening price after a dismal US jobs report reassured investors the Federal Reserve would continue to ease policy.
New
2024.11.01 23:56RBNZ: A high bar for a 75bps cut - Standard Chartered
We think the bar is high for a 75bps OCR cut given the prevailing economic backdrop.
New
2024.11.01 23:56EUR/CAD Price Prediction: Decisively breaks out of top of pattern
EUR/CAD rallies and pierces decisively above the slanting roof of the price pattern it had been trading in since the beginning of August.
New
2024.11.01 23:40Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
