The NZDUSD pair at 0.59040 is experiencing ongoing selling pressure near a monthly low of approximately 0.5907.
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- NZD/USD remains under selling pressure near a monthly low of around 0.5907.
The pair currently trades last at 0.59040.
The previous day high was 0.5943 while the previous day low was 0.5885. The daily 38.2% Fib levels comes at 0.5907, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5921, expected to provide resistance.
The NZD/USD pair recovers some lost ground above the 0.5900 mark but remains under pressure near the monthly low during the early Asian session on Monday. The US economy’s strength continues to support the US Dollar. NZD/USD currently trades around 0.5907, gaining 0.08% on the day.
The Federal Reserve (Fed) Chairman Jerome Powell said at the Jackson Hole Economic Symposium that the central bank is prepared to raise interest rates further, if necessary, and will determine the next rate move based on data. Powell indicated that the strong economic growth and tight labor market conditions might pave the way for further tightening cycle. If the data do not show indications of softening, additional rate rises would be appropriate.
Philadelphia Fed President Patrick Harker stated that he does not see the need for additional rate hikes at this time and the Fed should hold rates steady and observe the impact of policy on the economy. Meanwhile, Cleveland Fed President Loretta Mester said that GDP and labor market data show that the economy is gaining momentum. She emphasized that the current rates are not restrictive enough to reach the inflation target and a lower growth rate would be essential to moderate inflation.
About the data on Friday, the University of Michigan’s (UoM) Consumer Confidence Index for August fell to 69.5 from 71.6 in July and was revised from the first reading of 71.2. Additionally, The Current Conditions Index dropped from 76.6 to 75.7 (revised from 77.4), while the Expectations Index fell from 68.3 to 65.5 (revised from 67.3).
On the other hand, the headlines surrounding Chinese economic woes weigh on the China-proxy Kiwi. That said, the Chinese government has promised aid for the property market, but its efforts have so far failed to restore investor confidence. The chief economist of the Reserve Bank of New Zealand (RBNZ) said last week that policymakers would lower the OCR sooner than we have signaled if China experienced a more significant deceleration than the RBNZ anticipates.
Looking ahead, market participants will shift their focus to the economic data. The US Nonfarm Payrolls and inflation data will be the highlight ahead of the September FOMC meeting. Also, the Chinese Purchasing Managers’ Indexes (PMI) will be in focus. The data will be critical for determining a clear movement for the NZD/USD pair.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.5907 at the time of writing. Pair opened at 0.5903 and is trading with a change of 0.07 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.5907 |
| 1 | Today Daily Change | 0.0004 |
| 2 | Today Daily Change % | 0.0700 |
| 3 | Today daily open | 0.5903 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6011, 50 SMA 0.6125, 100 SMA @ 0.6152 and 200 SMA @ 0.6227.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6011 |
| 1 | Daily SMA50 | 0.6125 |
| 2 | Daily SMA100 | 0.6152 |
| 3 | Daily SMA200 | 0.6227 |
The previous day high was 0.5943 while the previous day low was 0.5885. The daily 38.2% Fib levels comes at 0.5907, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5921, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.5878, 0.5852, 0.582
- Pivot resistance is noted at 0.5936, 0.5968, 0.5994
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.5943 |
| Previous Daily Low | 0.5885 |
| Previous Weekly High | 0.5987 |
| Previous Weekly Low | 0.5885 |
| Previous Monthly High | 0.6413 |
| Previous Monthly Low | 0.6120 |
| Daily Fibonacci 38.2% | 0.5907 |
| Daily Fibonacci 61.8% | 0.5921 |
| Daily Pivot Point S1 | 0.5878 |
| Daily Pivot Point S2 | 0.5852 |
| Daily Pivot Point S3 | 0.5820 |
| Daily Pivot Point R1 | 0.5936 |
| Daily Pivot Point R2 | 0.5968 |
| Daily Pivot Point R3 | 0.5994 |
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