NZD/USD: Kiwi stuck near 0.5900 as bullish momentum proves fickle


  • Kiwi holding near the middle, set to finish Friday near where it started.
  • Market flows are firmly in the hands of the US Dollar.
  • Risk sentiment getting limited knock-on positive support from upbeat China outlook.

The NZD/USD is set to finish Friday on a slight downstep, trading into the 0.5900 level and unable to find some lift. 

With little meaningful momentum coming from the Kiwi (NZD) side of things, the NZD is fully exposed to broader market flows, leaving the Greenback (USD) to dictate the direction of the pair.

China data beats bolstering beleaguered Kiwi

Risk appetite is being supported by additional stimulus from China, bolstering the Antipodeans and putting a floor beneath any major declines. Official Chinese data showed that industrial production and retail sales figures rose faster than expected, providing further support for market sentiment heading into the weekend.

Market flows for the NZD/USD are notably leaning into the US Dollar side, and the direction is following the broader Dollar Index. The USD saw some hesitation after the University of Michigan (UoM) Sentiment Index missed expectations, slipping more than expected to 67.7 from 69.5. Inflation expectations also slid from 3.0% to 2.7%.

The USD is now catching some bids across the board as markets ease into the week's market close.

NZD/USD technical outlook

The Kiwi is constrained near the middle of price congestion that has become familiar territory for this trading week, caught in a rough near-term range between 0.5930 and 0.5890. 

Upside momentum will be constrained by the last swing high near 0.5980 on the daily candlesticks, which show the pair decidedly on the low end. Support is coming from September’s lows near 0.5860, and a further break to the downside sees little in the way of additional technical support.

The 50- and 100-day Simple Moving Averages (SMAs) are in a bearish decline, piled up at 0.6060 and 0.6120 respectively, and breaks above the 100-day SMA have struggled to sustain for some time in the NZD/USD pair.

NZD/USD daily chart

NZD/USD technical levels

NZD/USD

Overview
Today last price 0.5904
Today Daily Change -0.0008
Today Daily Change % -0.14
Today daily open 0.5912
 
Trends
Daily SMA20 0.5923
Daily SMA50 0.606
Daily SMA100 0.6114
Daily SMA200 0.6202
 
Levels
Previous Daily High 0.5945
Previous Daily Low 0.5901
Previous Weekly High 0.5961
Previous Weekly Low 0.5847
Previous Monthly High 0.6219
Previous Monthly Low 0.5885
Daily Fibonacci 38.2% 0.5918
Daily Fibonacci 61.8% 0.5929
Daily Pivot Point S1 0.5894
Daily Pivot Point S2 0.5876
Daily Pivot Point S3 0.585
Daily Pivot Point R1 0.5938
Daily Pivot Point R2 0.5964
Daily Pivot Point R3 0.5982

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower. 

EUR/USD News
GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.

GBP/USD News
Gold drops to $2,620 area as US bond yields edge higher

Gold drops to $2,620 area as US bond yields edge higher

Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.

Gold News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures