Created
: 2024.11.08
- 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: Recovery stalls near 20-day EMA
World FX news
Breaking news
NZD/USD Price Forecast: Recovery stalls near 20-day EMA
New
2024.11.08 19:33
2024.11.08 19:33
2024.11.08 19:33
- NZD/USD corrects to near 0.6000 as the US Dollar bounces back.
- Trump's protectionist policies would keep the US Dollar's downside limited.
- The RBNZ is expected to cut interest rates again by 50 bps.
The NZD/USD pair struggles to extend Thursday's recovery move above 0.6050 and corrects to near the psychological support of 0.6000 in Friday's European session. The Kiwi pair faces slight pressure as the US Dollar (USD) rebounds after a sharp correction on Thursday. The US Dollar Index (DXY), which gauges Greenback's value against six major currencies, bounces back from 104.20.
The USD gains as market participants expect that US Donald Trump's tight external policies would improve the overall productivity, business investment, and spending for the longer term. Trump promised to raise import tariffs by 10% universally, except China, which is expected to face even higher duties.
Meanwhile, the outlook of the New Zealand Dollar (NZD) remains weak as poor labor demand has solidified speculation of another Reserve Bank of New Zealand (RBNZ) larger interest rate cut in its policy meeting on November 27.
New Zealand Q3 employment data showed that the laborforce reduced by 0.5%, faster than estimates of a 0.4% decline. The Unemployment Rate rose to 4.8%, slower than estimates of 5% but was higher than 4.6% in the second quarter of this year.
NZD/USD encounters offers after a mean-reversion move to near the 20-day Exponential Moving Average (EMA), which trades around 0.6023. The 14-day Relative Strength Index (RSI) returns above 40.00, suggesting that the bearish momentum has faded. However, the bearish bias remains intact.
More downside is highly likely towards the round-level support of 0.5900 and the April 19 low at 0.5850 if the pair breaks below the October 31 low of 0.5940.
On the flip side, a further recovery above the October 23 high of 0.6058 will drive the asset toward the round-level resistance of 0.6100 and the October 8 high of 0.6146.
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
: 2024.11.08
Related articles
Canada Unemployment Rate stays unchanged at 6.5% vs. 6.6% expected
6 minutes agoSilver Price Forecast: XAG/USD resumes decline as traders assess Trump policy's implications
17 minutes agoSaudi Arabia lowers selling prices for Asia - Commerzbank
47 minutes agoEUR/GBP Price Forecast: Finds support at bottom of range
50 minutes agoUSD/JPY: Bias for downside play - OCBC
57 minutes agoCrude Oil remains stuck in tight range for four consecutive day
2024.11.08 21:37
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
Canada Unemployment Rate stays unchanged at 6.5% vs. 6.6% expected
Statistics Canada reported on Friday that the Unemployment Rate in Canada remained unchanged at 6.5% in October.
New
2024.11.08 22:40Silver Price Forecast: XAG/USD resumes decline as traders assess Trump policy's implications
Silver price (XAG/USD) resumes its downside move after its recovery move met resistance near $32.20 in the North American session on Friday.
New
2024.11.08 22:30Saudi Arabia lowers selling prices for Asia - Commerzbank
Saudi Arabia, the world's largest oil exporter, cut its official selling prices (OSPs) for oil deliveries to Asia in December, indicating weaker oil demand, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
2024.11.08 22:00EUR/GBP Price Forecast: Finds support at bottom of range
EUR/GBP has fallen down to the base of its six-week range (red dashed line on chart) at roughly 0.8311; it is likely encountering firm support at that level.
New
2024.11.08 21:56USD/JPY: Bias for downside play - OCBC
USD/JPY slipped as Trump trades unwind. Near term, election noises in US and Japan may cloud the outlook for JPY but more likely than not, election uncertainty in US and Japan should come to pass.
New
2024.11.08 21:49Silver, Platinum and Palladium prices are falling - Commerzbank
The strong US Dollar (USD) put pressure not only on Gold but also on the prices of other precious metals.
New
2024.11.08 21:43Crude Oil remains stuck in tight range for four consecutive day
Crude Oil dips slightly on Friday but remains within the tight range it has been trading in the past four days. The market euphoria following President-elect Donald Trump's victory appears to be fading as energy markets shift their focus to China, where the
New
2024.11.08 21:37EUR/USD: Downside bias on the daily charts - OCBC
The Euro (EUR) rebounded overnight but continued to trade near recent lows.
New
2024.11.08 21:35Gold price slumps after Trump victory - Commerzbank
The price of Gold came under pressure in the immediate aftermath of Donald Trump's election victory, falling by more than 3% to $2,650 per troy ounce.
New
2024.11.08 21:31DXY: Still 2-way trades on the day - OCBC
The US Dollar (USD) fell, alongside decline in UST yields. FX volatility eased further.
New
2024.11.08 21:12Disclaimer:
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
