Nzdusd Trades Higher Amid Less Aggressive Fed

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Nzdusd Trades Higher Amid Less Aggressive Fed

Nzd/Usd Trades Near 0.6250 Amid Less Aggressive Fed

Friday's session saw the New Zealand Dollar (NZD) gain the upper hand against the greenback. The pair is now near the 0.6250 level, with sight on the following resistance levels.

According to one expert, the NZD/USD is likely in the consolidation phase and is trying to recover the losses after the NFP data. After the recent data from the US, the Federal Reserve will no longer be as aggressive as it was in the past.

Us Data Disappoints, Nzd Takes The Lead

Despite the ground reality, many market players are still firm on rate cuts as soon as March. However, the number of people who believe in early rate cuts from the Fed continues to go down!

The most recent data on the US was from NFP and the ISM's PMI (services sector). The NFP data was positive, while the PMI for the services sector was not so good. Together, these data releases show a mixed outlook for the US economy.

This makes it more difficult to predict how the Federal Reserve will react to the recent data. That's one of the reasons why many people resorted to selling the greenback against the NZD.

The outlook on the NZD/USD daily chart can be defined as neutral-bullish, as even the RSI is printing values in the green zone. On the contrary, the MACD suggests that bears are gaining control, which could lead to a bearish trend in the short term.

And if we look at the on-chart indicators like the SMA, it still points to a stronger New Zealand Dollar. If we only look at the SMA's, it becomes clear that the buying pressure is still too intense compared to the bears.

Against this backdrop, both the technical & and fundamental outlook favour the NZD buyers. That's why we can confidently say that the bulls will dominate the short-term period of NZD/USD.

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