Nzdusd Vulnerable Near Lows

last updated on

Nzdusd Vulnerable Near Lows

Nzd/Usd Vulnerable Near Monthly Lows, Trades Above 0.5900

NZD/USD is under consistent selling pressure & has closed in red for the 6th day in a row. Right now, the NZD/USD pair is trading at nearly 0.5920, a level only last seen in May 2024.

But, what's causing the weakness in the New Zealand Dollar (NZD)? The first one is the increased odds of a rate cut from RBNZ after the release of a weak CPI report. Other than that, the slowdown in China, along with a weaker risk tone, is also pushing investors away from the Kiwi.

Rbnz To Cut Rates, According To Forecast

However, that's not to say everything is going great for the US Dollar. In fact, the US Dollar is also struggling to find demand amid the odds of a rate cut from the Federal Reserve. So, that's also a reason why the investors are hesitant to sell the NZD/USD rather aggressively.

Moreover, it seems that investors prefer to sit on the sidelines before the release of important macro data from the USA. Including the US GDP (Q2) along with the PCE scheduled on Friday.

The upcoming GDP and the PCE data will be crucial as they can influence the policy path of the Federal Reserve. So, it can either drive the demand for the US Dollar or send it to new lows. In either case, the implications of these data releases will be important for the NZD/USD.

Right now, the forecasts for these data releases favor the NZD/USD sellers. So, even if we see any attempt at recovery in the NZD/USD, it will be taken as an opportunity to sell it again!

However, if the RBNZ doesn't cut the rates at the next meeting, it will signal a trend shift in the NZD/USD. In that case, we can expect the NZD/USD to turn higher and target the resistance levels at 0.6000, 0.6100, and so on.

Trending Stories