The NZD/USD continues to offer day traders fast results via price movements, but also continues to traverse in the middle of its near-term and one month value range.
As of this morning’s writing the NZD/USD is near the 59.60000 level. If a trader has not given the NZDUSD attention the past week, month, and actually since the middle of April they would see the currency pair largely rest in a known range today. The NZD/USD is certainly correlating to the broad market, but it is also showing a rather telltale inability to sustain price action above the 0.60000 ratio.
Early tomorrow morning a manufacturing index, a food inflation report and tourists data will be published from New Zealand. These results will have an impact on the NZD/USD. Positive outcomes could provide some buying impetus, lackluster results will have to be interpretated depending on the existing sentiment in the global Forex arena.
Support Levels as Speculative Buying Points
The belief that the U.S Federal Reserve is going to cut its interest rate in September has bolstered buying of the NZD/USD, but resistance around the 0.59750 to 0.59900 levels has been pronounced. Financial institutions are likely leaning into the notion the NZD/USD should be stronger, but until price action is sustained above 0.60000 it may be difficult to build real impetus upwards which could challenge levels seen above near the 0.60700 sphere.
Before New Zealand’s economic data due for publication tomorrow, today the U.S will release important inflation numbers via the Producers Price Index. If the numbers meet expectations this will be another solid bit of evidence the Federal Reserve needs to cut the Federal Funds Rate on the 17th of September. However, this price action may have already been factored into the NZD/USD. Support levels may prove interesting as places to ignite buying if the 0.59550 to 0.59500 ratios are challenged below short-term. The notion that USD centric weakness dominates is rather evident in global Forex the past two weeks.
Looking for Upside with Headwinds Blowing
Traders looking for upside in the NZD/USD cannot be blamed. However, because of the recent ability of resistance to cause push back, day traders should remain careful and be willing to cash out winnings when they materialize.
- The currency pair continues to look like it remains in slightly oversold territory.
- But until higher realms are sustained it is possible financial institutions are worried about the New Zealand economy and further impetus is needed to justify stronger buying.
- Looking for values above the 0.60000 near-term may be too ambitious.
- The NZD/USD can move fast and speculators need to understand volatility is second nature in the currency pair.
NZD/USD Short Term Outlook:
Current Resistance: 0.59650
Current Support: 0.59820
High Target: 0.59550
Low Target: 0.59425
Ready to trade our daily Forex analysis? Here’s a list of the brokers for forex trading in New Zealand to choose from.
