The New Zealand Dollar to US Dollar exchange rate, currently at 0.59025, is declining for the second consecutive day and reaches a new low for the year so far.

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• NZD/USD continues losing ground for the second straight day and hits a fresh YTD low.

The pair currently trades last at 0.59025.

The previous day high was 0.5982 while the previous day low was 0.5916. The daily 38.2% Fib levels comes at 0.5941, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5957, expected to provide resistance.

The NZD/USD pair drifts lower for the second successive day on Friday and touches a fresh low since November 2022 during the early part of the European session. Spot prices, however, once again show some resilience below the 0.5900 mark and quickly recover a few pips in the last hour, though any meaningful upside remains elusive amid the underlying bullish tone around the US Dollar (USD).

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, advances to a two-and-half-month top as traders continue to price in the possibility of further policy tightening by the Federal Reserve (Fed). The bets were reaffirmed by the overnight hawkish remarks by Fed officials, keeping the door open for one more 25 bps lift-off by the end of this year. The outlook, meanwhile, remains supportive of elevated US Treasury bond yields and continues to underpin the buck.

Apart from the view that the Fed will keep interest rates higher for longer, worries about a deeper global economic downturn further benefit the safe-haven Greenback and should contribute to capping the NZD/USD pair. Against the backdrop of the worsening economic conditions in China, a host of manufacturing surveys on Wednesday painted a grim picture of the health of economies across the globe and fueled recession fears. This should act as a headwind for the growth-sensitive Kiwi.

Traders, however, might refrain from placing fresh bearish bets around the NZD/USD pair and prefer to move to the sidelines ahead of Fed Chair Jerome Powell’s highly-anticipated speech at the Jackson Hole Symposium. Investors will look for fresh cues about the Fed’s future rate-hike path, which will play a key role in influencing the USD price dynamics and provide a fresh directional impetus to the major. Nevertheless, spot prices remain on track to register losses for the sixth straight week.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5912 at the time of writing. Pair opened at 0.5923 and is trading with a change of -0.19 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6024, 50 SMA 0.6131, 100 SMA @ 0.6155 and 200 SMA @ 0.6228.

The previous day high was 0.5982 while the previous day low was 0.5916. The daily 38.2% Fib levels comes at 0.5941, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5957, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5899, 0.5874, 0.5833
• Pivot resistance is noted at 0.5965, 0.6006, 0.6031

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