- The NZD/USD moves up the fourth consecutive day on Monday in the middle of a sustained sale of the USD.
- The technical configuration favors the bulls and supports the perspectives of greater appreciation.
- Corrective landslides around 0.5800 could be seen as a purchase opportunity and remain limited.
It is observed that the NZD/USD torque is consolidating over the solid recovery last week since the region of 0.5485, or its lowest level since March 2020, and gaining a strong positive impulse for the fourth consecutive day on Monday. The purchase interest remains unchanged during the first half of the European session in the middle of a US dollar (USD) in general, raising cash prices to the neighborhood of 0.5900, or a new maximum so far this year.
The aforementioned level represents an obstacle of confluence that includes a simple mobile average (SMA) of 200 technically significant days and an ascending line of several months. Meanwhile, an intradic rupture above the region of 0.5825-0.5830, or the level of fibonacci decline of 38.2% of the fall of September from 2024 to April 2025, could be seen as a new trigger for the bulls. This, together with positive oscillators in the daily chart, suggests that the path of lower resistance for the NZD/USD is upwards.
That said, it will still be wise to expect a sustained break and acceptance above the level of 0.5900 before positioning for more profits. Cash prices could then exceed the level of 50% Fibonacci, around the region of 0.5930-0.5935, and climb more towards the psychological level of 0.6000 en route to the area of 0.6035-0.6040, or the level of 61.8% of Fibonacci. The subsequent movement will suggest that the NZD/USD has formed a short -term minimal and will open the way for a new short -term appreciation movement.
On the negative side, any corrective setback now seems to find a decent support near the region of 0.5825-0.5830 (level of 38.2% of Fibonacci). This is followed by the level of 0.5800, which if it breaks decisively could cause some technical sales and drag the NZD/USD to the intermediate support of 0.5765-0.5760 en route to the round level of 0.5700, or the level of 23.6% of Fibonacci. The latter should act as a key point and a solid base for cash prices. However, a convincing rupture below could change the trend in favor of bassists.
NZD/USD DIARY GRAPH
New Zealand Faqs dollar
The New Zealand dollar (NZD), also known as Kiwi, is a well -known currency among investors. Its value is largely determined by the health of the neozyous economy and the policy of the country’s central bank. However, there are some peculiarities that can also make the NZD move. The evolution of the Chinese economy tends to move Kiwi because China is the largest commercial partner in New Zealand. The bad news for the Chinese economy is probably translated into less neozyous exports to the country, which will affect the economy and, therefore, its currency. Another factor that moves the NZD is the prices of dairy products, since the dairy industry is the main export of New Zealand. The high prices of dairy products boost export income, contributing positively to the economy and, therefore, to the NZD.
The New Zealand Reserve Bank (RBNZ) aspires to reach and maintain an inflation rate between 1% and 3% in the medium term, with the aim of keeping it near the midpoint of 2%. To do this, the Bank sets an adequate level of interest rates. When inflation is too high, RBNZ rises interest rates to cool the economy, but the measure will also raise bond performance, increasing the attractiveness of investors to invest in the country and thus boosting the NZD. On the contrary, lower interest rates tend to weaken the NZD. The differential type of types, or how they are or is expected to be the types in New Zealand compared to those set by the Federal Reserve of the US, can also play a key role in the NZD/USD movement.
The publication of macroeconomic data in New Zealand is key to evaluating the status of the economy and can influence the valuation of the New Zealand dollar (NZD). A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and can encourage the New Zealand reserve bank to increase interest rates, if this economic strength is accompanied by high inflation. On the contrary, if the economic data is weak, the NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during periods of appetite for risk, or when investors perceive that the general market risks are low and are optimistic about growth. This usually translates into more favorable perspectives for raw materials and the so -called “raw material currencies”, such as Kiwi. On the contrary, the NZD tends to weaken in times of turbulence in markets or economic uncertainty, since investors tend to sell the most risky assets and flee the most stable shelters.
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.
