The NZD/USD is near the 0.57070 ratio as of this writing, which is an accomplishment considering the currency pair was traversing lows around the 0.55900 mark in late February and early
The NZD/USD like the broad Forex market has turned in cautious but better results for traders wagering on USD weakness. However, the bullish move higher attained by the NZD/USD since the start of March has run into rather firm resistance the past week. The result of the durable resistance level around 0.57400 to 0.57600 has been reversals lower. The NZD/USD carries different perspective depending on the timeframe parameters of its traders.
The ability to come off lows seen in early March, after testing support around the 0.55900 to 0.55850 ratios has correlated to global Forex conditions which has shown financial institutions starting to treat the USD suspiciously. However, trading in the NZD/USD like most other major currency pairs has been treacherous the past handful of months, this as sentiment continues to shift and suffer reactions per the lack of clarity regarding U.S policy on threatened tariffs.
Top Forex Brokers
The 0.57000 Level as Support Once Again
The short-term has seen the NZD/USD come off of highs which saw resistance firm around the 0.57460 vicinity the past few days. It appears that cautious attitudes still pervade financial institution. While major institutions may believe the NZD/USD has been oversold the past handful of months, it has been hard to sustain momentum above the 0.57600 level since the middle of December.
Trading within the existing price range in the NZD/USD offers price volatility, but if speculators are not using adequate risk management frustrating results have likely followed. The NZD/USD like most other major currency pairs appears ready to languish within the current price range until impetus is delivered via clear messaging. Unfortunately for the time being, it appears a lack of clarity is going to remain the main driver in Forex. Short-term speculators who have technical perspectives may find they have an advantage.
U.S Inflation Data and New Zealand Economic Statistics
It is tempting to believe yesterday’s weaker than anticipated U.S inflation data would help the NZD/USD find more buyers. The Consumer Price Index results yesterday however, did not help bolster risk appetite in Forex.
- Today the Producer Price Index results will be seen and traders who gear their insights to the inflation results should be ready for the potential that it isn’t a data driven marketplace for the moment, and that it is behavioral sentiment which is causing storms in trading attitudes.
- The 0.57000 level should be watched in the NZD/USD near-term, if it can hold as support it may indicate financial institutions still believe upside is more favorable.
- Yet, because of the rather consistent volatility seen in the NZD/USD the past couple of months traders should remain skeptical and be willing to allow for a test of the existing range.
NZD/USD Short Term Outlook:
Current Resistance: 0.57110
Current Support: 0.57010
High Target: 0.57375
Low Target: 0.56960
Ready to trade our daily Forex analysis? Here's a list of the brokers for forex trading in New Zealand to choose from.