- Speculators who have been in pursuit of the NZD/USD the past week have seen values produce a rather chaotic assortment of prices.
- The currency pair is near 0.61250 as of this writing, but readers are urged to check on the NZD/USD as they look at this article to see where the market has gone in the meantime.
- Important mid-term support still is being fought over which essentially formed technically after the U.S Federal Reserve meeting on the 13th of December.
- Headwinds have been met when resistance has been approached near the 0.61400 mark with occasional outliers.
The NZD/USD did move higher after the Fed announcement in December, and while it may seem odd to day traders to be speaking about support levels from more than a month ago – there is a reason why it is being focused on. Financial institutions clearly are waiting for more impetus from U.S data before they make there next big moves in Forex and this includes the NZD/USD.
NZD/USD and Key Date Readings
Inflation data from New Zealand which was released early this morning met expectations; this has helped solidify some bullish perspective regarding the NZD/USD. However tomorrow’s U.S Gross Domestic Product numbers will factor into the currency pair’s trading. And on Friday inflation statistics from the U.S via the Core PCE figures will be released. The growth and price statistics coming from the U.S tomorrow and Friday will factor into NZD/USD results.
The choppiness of the last week has potentially been good to technical traders and the question is what influences the coming U.S data will have on the NZD/USD moving forward. After moving to highs in late December around the 0.63700 level the rather steady downwards movement lasted until the 17th of January. Since last week’s low around the 0.60880 ratio the NZD/USD has demonstrated almost whipsaw like price action. Traders are urged to remain cautious in the near-term.
Near-Term Results Likely to Produce Reversals until Outlook Changes
The past week of results has demonstrated constant reversals, this morning’s move higher in the NZD/USD may create the belief that buying sentiment lingers among financial institutions, but speculators will need to see what the U.S data reports produce in the coming days to make this a legitimate sentiment.
- If the GDP number from the U.S comes in weaker than expected this could cause some bullish price action in the NZD/USD.
- However, a stronger growth number from the U.S could ignite more selling in the NZD/USD.
- The combination of the growth and inflation readings coming from the States is likely to keep the remainder of today rather speculative for the NZD/USD, and short-term reversals should be anticipated technically.
NZD/USD Short Term Outlook:
Current Resistance: 0.61325
Current Support: 0.61120
High Target: 0.61455
Low Target: 0.60880
Ready to trade our Forex daily analysis and predictions? Here's a list of regulated forex brokers to choose from.