- The NZD/USD pair has fallen back below 0.6000 as markets bet on the US dollar again.
- The Kiwi recovery pattern is beginning to consolidate.
- The New Zealand PPI will close the week for the Kiwi, and US housing starts will be released on Friday.
The pair NZD/USD pulls back on Thursday and prepares for its worst day of trading in a month, falling more than 1.2% from the day’s high of 0.6037.
The lack of economic data in the US reduced risk appetite in the markets, pushing the US Dollar (USD) higher against riskier assets such as the Kiwi (NZD). US Initial Jobless Claims for the week of November 10 rose to 231,000, above expectations of 220,000 and surpassing the previous week’s 218,000 (revised upward from 217,000).
US industrial production also failed to live up to expectations, with October output falling 0.6%, retreating from September’s meager 0.1% growth (revised down from 0.3%) and outperforming market forecasts of -0.3%.
The New Zealand Producer Price Index (PPI) will be known in the Friday session, when the New Zealand Markets open higher. The New Zealand PPI for the third quarter stood at -0.2% for inputs and 0.2% for production.
NZD/USD Technical Outlook
The Kiwi’s pullback below the 0.6000 zone leaves NZD/USD exposed to further declines, with the pair at risk of pulling back through the 50-day SMA and towards the 0.5900 zone, with the latest swing low near 0.5860.
On the upside, this week’s high at 0.6050 represents a level of technical resistance due to repeated rejections from the region since the drop into the area below 0.6100 in August. Long-term technical resistance will cap any upside at the 200-day SMA near 0.6100.
NZD/USD Daily Chart
NZD/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
