The NZDUSD pair is continuing its decline and is currently trading near 0.5938 in the early Asian session.

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• NZD/USD extends its downside, currently trades near 0.5938 in the early Asian session.

The pair currently trades last at 0.59381.

The previous day high was 0.5997 while the previous day low was 0.5947. The daily 38.2% Fib levels comes at 0.5966, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5978, expected to provide resistance.

The NZD/USD pair loses ground and breaks below the 0.5650 area during the early Asian session on Thursday. The pair trades in negative territory for the seventh consecutive day after retreating from a weekly high of 0.5993. NZD/USD currently trades around 0.5938, up 0.02% on the day.

The Reserve Bank of New Zealand (RBNZ) kept the benchmark interest rates unchanged at 5.5%, as expected on Wednesday. According to the World Interest Rate Possibilities Tool (WIRP), markets anticipate that RBNZ will not hike additional rates and will begin to ease in H2 2024.

Earlier on Thursday, RBNZ Governor Adrian Orr also offered a hawkish signal to rein in rising inflation expectations. Orr stated that the drivers of inflation have changed over time, but they have all been skewed towards higher inflation than otherwise.

The latest data from Statistics New Zealand showed that the Q2 Producer Price Index Input QoQ came in at -0.2% versus 0.2% prior. On the same line, the output figure declined to 0.2%, worse than the 0.7% expected and the previous reading of 0.3%.

The Federal Open Market Committee (FOMC) released the minutes of its July meeting. The Fed official saw significant inflationary risks and it may need additional tightening of monetary policy to bring inflation to the longer-run target. The hawkish statement and the stronger US economic data are the main drivers for the strengthening of the Greenback. The US Dollar Index (DXY), a measure of the value of USD against six other major currencies, extends its upside above 103.45, the highest level since June.

On Wednesday, US Industrial Production increased 1.0% in July, against market expectations of 0.3% and -0.8% prior. Meanwhile, Building Permits for July climbed to 1.442 million from 1.441 million, while Housing Starts rose to 1.452 million from 1.398 million in June, and 1.448 million expected. Both the Change in Building Permits and the Change in Housing Starts exceeded market expectations and previous readings.

Looking ahead, investors will monitor the US weekly Initial Jobless Claims for the week ending August 11 and the Philadelphia Fed Manufacturing Survey for August. The data will be critical for determining a clear movement for the NZD/USD pair.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.594 at the time of writing. Pair opened at 0.5951 and is trading with a change of -0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.612, 50 SMA 0.616, 100 SMA @ 0.6179 and 200 SMA @ 0.6233.

The previous day high was 0.5997 while the previous day low was 0.5947. The daily 38.2% Fib levels comes at 0.5966, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5978, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5933, 0.5915, 0.5883
• Pivot resistance is noted at 0.5983, 0.6015, 0.6033

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