The NZD/USD has fallen once again and as of this writing the 0.56065 ratio is seeing price action as nervousness is clearly influencing the currency pair and global Forex.
The New Zealand Dollar has been underperforming in Forex in comparison to other major currencies versus the USD for a while now. Depending on perspectives and timeframes the NZD/USD has been in a rather persistent down trend that has been choppy but steadfast. As of this writing the currency pair is near the 0.56065. The NZD/USD has struggled to get above the 0.57000 level since the first week of November.
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While correlating to the broad market the NZD/USD sometimes appears technically more reactive with greater force when USD centric strength gathers steam. Yesterday the U.S Federal Reserve issued their FOMC Meeting Minutes and it clearly shows the U.S Fed is not convinced another interest rate hike on the 10th of December is viable. The NZD/USD saw rapid selling develop late yesterday and the currency pair is trading near lows it traversed in April and earlier in 2025.
Long-Term Lows in Sight for the NZD/USD Again
The current value of the NZD/USD is confronting the 0.56000 level which is viewed as significant by financial institutions. The currency pair traded below this level earlier this year, but a look at a long-term chart clearly shows the current low levels have not been sustained and tend to find buying power emerge. However, is this time different?
Economic conditions in New Zealand remain lackluster and financial institutions which judge domestic data in the nation are not feeling comfortable about growth outlooks. The promise from afar via the U.S Federal Reserve’s ability to cut the Federal Funds Rate helped propel the NZD/USD higher, and it was near the 0.60050 vicinity in the middle of September momentarily, but those highs have certainly faded.
Looking for a Reversal Higher and Speculation
The thought that the NZD/USD must start to move higher may be logical, but it has proven difficult to build a trend upwards that day traders can take advantage of via positions that are consistent.
- Yesterday’s steep fall and watching the NZD/USD begin to challenge the 0.56000 vicinity is likely alarming for financial institutions in New Zealand psychologically. How will they react?
- The U.S will release Non-Farm Employment Change data later today – this is a delayed report being published late because of the U.S government shutdown which had been in effect until early last week.
- The jobs data from the U.S could impact Forex and the NZD/USD.
- Some speculators may believe the NZD/USD has fallen too low and must move higher, but wagering on reversals higher in a sustained manner will need positive impetus.
- The near-term may remain quite challenging for the NZD/USD.
NZD/USD Short Term Outlook:
Current Resistance: 0.56125
Current Support: 0.56035
High Target: 0.56350
Low Target: 0.55950
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