Search

NZD strengthens as rate cut expectations fade. The key test: breaking the 100-day moving average

TraderKnows
TraderKnows
08-12

The New Zealand dollar rose past 0.6000 against the US dollar on Monday, driven by strong employment data and reduced expectations of an August rate cut.

Out of the 21 economists surveyed, 12 predict that the Reserve Bank of New Zealand will keep interest rates unchanged at 5.5% this Wednesday.

However, further tensions in the Middle East and rising geopolitical risks may exert selling pressure on high-risk assets like the New Zealand dollar, limiting its appreciation against the U.S. dollar.

Traders are closely monitoring the upcoming interest rate decision from the Reserve Bank of New Zealand on Wednesday, seeking new market catalysts. Meanwhile, the U.S. will release a series of significant economic data this week, including the Producer Price Index (PPI) on Tuesday, Consumer Price Index (CPI) on Wednesday, and retail sales data on Thursday, which could all significantly impact the movement of the New Zealand dollar against the U.S. dollar.

Market analyst Lallalit Srijandorn pointed out that from a daily chart perspective, the New Zealand dollar against the U.S. dollar remains in a bearish trend, with the exchange rate still below the key 100-day moving average. The 14-day Relative Strength Index (RSI) is hovering in the neutral zone, close to the 50 midpoint, suggesting that the exchange rate may experience a period of consolidation before making a clear move.

In a bullish scenario, the primary resistance level for the New Zealand dollar against the U.S. dollar is around 0.6050, which is the 100-day moving average. If this level is breached, it could push the exchange rate further up towards 0.6080, near the upper boundary of the Bollinger Bands. Another notable resistance level is 0.6134, the high point from July 9.

If sellers regain control of the market, the New Zealand dollar against the U.S. dollar could fall back to 0.5912, the low point from August 6. If the exchange rate continues to stay below this level, it could further drop to 0.5856, the low point from July 29 and the lower limit of the Bollinger Bands.

As of 9:55 AM Beijing time on August 12, the New Zealand dollar against the U.S. dollar was quoted at 0.6010/12.

商务合作 Telegram Eng

商务合作 Skype ENG

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Organization

You Missed

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact