The NZD/USD is trading below the 0.57420 ratio as of this writing and has shown a significant amount of downwards momentum since yesterday, in fact since the day before Christmas.
True to form the New Zealand Dollar has nosedived once again. Long-term charts continue to produce a similar story in the NZD/USD – a tendency to produce gains and then an abrupt ability to head south. The NZD/USD is not only below the 0.58000 realm once again and touching values seen around the 19th of December, but the lows also are a reminder of stubborn weakness that has been persistent on the NZD.
Yes, it can be said the NZD/USD has correlated to the broad Forex market the past few days, but it can still be said too that the New Zealand Dollar has been a laggard regarding any stronger moves against the USD when it comes to being sustained. In other words, the NZD/USD consistently delivers downside action after moving higher.
The 0.57500 Ratio as a Barometer
Trading in New Zealand is mostly done for today regarding higher volumes, although the currency pair will continue to trade all day the volumes will now decrease even as the North Americans enter the Forex landscape. However, tomorrow the U.S will issue important economic data and this will spur financial institutions which have still been in a holiday state of mind to react. The U.S jobs number via the Non-Farm Employment Change will be the first big economic report of 2026 in the minds of many large players in Forex.
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Having fallen below the 0.58000 realm earlier this week, and then falling below the 0.57500 ratio earlier today, the NZD/USD is not showing much in the way of suddenly reversing upwards. Day traders need to understand volumes will be lackluster until New Zealand institutions open again tomorrow. There is a strong chance volatility may be seen early tomorrow morning as large players position ahead of the U.S data. Will they believe the NZD/USD is oversold at its current levels? The 0.57500 and below mark may appear cheap for the NZD/USD but it has seen lower ratios before.
Looking for Upside Action in the NZD/USD
However, day traders may be tempted to look for upside around the current depths being swam, but they should not get too confident about targets that may be out of reach if choppiness develops.
- The NZD/USD above the 0.57500 level may seem logical to many financial institutions too, but wagering on the currency pair before the USD data is released is dangerous.
- If the jobs numbers from the U.S are solid tomorrow, this could ignite some NZD/USD buying.
NZD/USD Short Term Outlook:
Current Resistance: 0.57475
Current Support: 0.57400
High Target: 0.57600
Low Target: 0.57340
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