The New Zealand dollar is in a slippery position as it needs bids to extend its price reversal from the previous day's monthly high, to then hit a weekly low around 0.6260 on Friday morning. Daily forex news about NZD/USD this time we quote directly based on analysis from FxStreet.com.

 

Therefore, the NZD/USD currency pair shows disappointing inflationary clues from the overall strong US Dollar, thus breaking through the key short-term technical support level.

 

The Reserve Bank of New Zealand (RBNZ) inflation expectations for the second quarter (Q2) of 2023 have fallen to their lowest level since Q3 of 2021, at 2.79% compared to the previous reading of 3.30%.

 

On the same day, the New Zealand business PMI index for April fell to 49.1 compared to expectations of 50.7 and the previous figure of 48.1. Meanwhile, Visitor Arrivals also fell to 805% in March compared to the previous growth of 4,998%.

 

As a result, the NZD/USD pair has broken through the uptrend line from late April and the 50-SMA, which are located near the levels of 0.6300 and 0.6290, respectively.

 

Although New Zealand's economic data showed negative results and the NZD/USD pair has broken through important technical support, the bearish signal on the MACD indicator also strengthens the possibility of a price decline to the weekly low near 0.6260.

 

However, the Relative Strength Index (RSI) condition which is almost reaching the oversold level also shows that the 200-SMA at around 0.6230 is the key short-term support that the Kiwi pair should pay attention to.

 

If the NZD/USD pair is unable to maintain the support level at 0.6230, then the round level of 0.6200 and the swing high of late April around 0.6190 will be the next focus.

 

However, the 50-SMA and the previous support lines, located at 0.6290 and 0.6300 respectively, could act as support and trigger an immediate recovery in the NZD/USD pair.

 

After that, the one-month-old horizontal resistance area around 0.6315 and the double top around 0.6385 will be important for NZD/USD bulls to watch.


Also Read : EUR/USD Soars Above 1.0950 as USD Weakens

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Warning!

 

This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

 

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