#NZDUSD @ 0.58409 retraces recent gains ahead of Fed policy rate decision.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• NZD/USD retraces recent gains ahead of Fed policy rate decision.

The pair currently trades last at 0.58409.

The previous day high was 0.5846 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.583, expected to provide support. Similarly, the daily 61.8% fib level is at 0.582, expected to provide support.

NZD/USD pulls back as the US Dollar (USD) rebounds after two days of losses, trading lower near 0.5840 during the early European session on Tuesday. Moreover, in September, the disappointing turn in the Chinese economic narrative unfolded with the NBS Manufacturing Purchasing Managers’ Index (PMI) unexpectedly contracting to 49.5. This outcome was contrary to the expected consistency at the 50.2 expansion observed in July.

The concerns about China’s economic conditions intensified as the NBS Services PMI also dropped to 50.6, falling short of the expected 51.8 and the previous reading of 51.7. The simultaneous contraction in both the manufacturing and services sectors raises substantial concerns about the overall economic health in China, which might undermine the Kiwi Dollar (NZD), given New Zealand’s status as the largest trading partner of China.

On New Zealand’s docket, the seasonally adjusted Building Permits (MoM) reported on Tuesday, declining by 4.7% compared to the previous drop of 0.7%. The Reserve Bank of New Zealand (RBNZ) is expected to adopt a more accommodative stance on interest rate hikes following the soft headline Consumer Price Index (CPI) data, which exerts pressure on the New Zealand Dollar (NZD).

The Employment Change and Unemployment Rate for the third quarter in New Zealand will likely to be crucial indicators that market participants will keenly observe later in the week. These data points provide valuable insights into the labor market, offering cues about the economic landscape, job creation, and overall employment conditions in the country.

United States (US) ADP Employment Change and ISM Manufacturing PMI for October may provide a broader perspective on the US economic situation. These data points can significantly influence market sentiment and contribute to the overall assessment of the economic health and performance of the United States.

Moreover, the anticipation that the US Fed interest rates will be maintained at 5.5% in the upcoming policy meeting is a crucial factor. This expectation, if realized, can lead to increased demand for US Treasury bills, putting downward pressure on US Treasury yields. The interplay of these dynamics is likely to impact the US Dollar (USD), making it an important consideration for traders in the current market environment.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5839 at the time of writing. Pair opened at 0.5843 and is trading with a change of -0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.59, 50 SMA 0.5918, 100 SMA @ 0.6032 and 200 SMA @ 0.6131.

The previous day high was 0.5846 while the previous day low was 0.5805. The daily 38.2% Fib levels comes at 0.583, expected to provide support. Similarly, the daily 61.8% fib level is at 0.582, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5816, 0.579, 0.5775
• Pivot resistance is noted at 0.5858, 0.5873, 0.5899

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...