Nzdusd Tries To Extend Upside

last updated on

Nzdusd Tries To Extend Upside

Nzd/Usd Tries To Extend Upside Beyond 0.6100

The NZD/USD pair is trading just close to 0.6100 resistance on Wednesday, with eyes set on the next bullish targets. Recently, the Kiwi has managed to secure gains against the US Dollar on speculations that the Fed will soon pivot its policy.

From today till the September meeting, there are still a lot of data releases in the USA. So even if a few of these data releases hint that disinflation progress is not going smoothly, it means we will have to wait till the end of 2024 for the first rate cut.

Dxy Hovers Near 103.60

Right now, the DXY (US Dollar index) continues to drift lower and is now sitting near 103.60, which is the lowest level in the last 4 months.

Meanwhile, the New Zealand Dollar (NZD) continues to show strength even after the release of a weaker Q2 CPI. Technically, a weaker CPI print means the RBNZ has more reasons to lower the policy rate, but the NZD continues to stay strong against the USD.

Maybe this has to do with the timing of these rate cuts... While the Fed will likely deliver the next rate cut within the next 60 days, we can't say the same about the US Federal Reserve.

The data from New Zealand has shown that quarterly inflation was +0.4%, lower than the 0.6% reading from Q1 2024. Similarly, the CPI (annual) has also declined to 3.3% from an earlier reading of 4.0%.

For now, the next support for the NZD/USD is near 0.6035 on the D1 timeframe, while the short-term trend favors the bears. This means the 20 EMA on the D1 chart will continue to act as dynamic resistance and is sitting around 0.6100 for now.

The momentum indicator, such as RSI, shows that the NZD/USD is going through an indecisive phase right now as it is printing in the 40 - 60 range.

Right now, the most important levels for the NZD/USD are the 0.6000 and the 0.6100. A break of either one of these levels will decide the next medium-term trend of the NZD/USD.

Trending Stories