NZD/USD extends its losses to near 0.6100 as risk aversion emerges

NZD/USD extends its losing streak following the NZ Yearly Budget on Thursday.
New Zealand Treasury sees inflation falling to below 3% in Q3.
The lower US Treasury yields put pressure on the US Dollar, limiting the downside of the pair.

Akhtar Faruqui FXStreet

NZD/USD continues its losing streak for the third consecutive day on Thursday. The pair trades around 0.6100 during European hours, following the release of the Yearly Budget by the New Zealand Treasury. According to the official transcript from the New Zealand Government's website (www.beehive.govt.nz), Finance Minister Nicola Willis stated that Budget 2024 outlines the Government’s plan to rebuild the economy, ease the cost of living, improve health and education services, and restore law and order.

New Zealand Government endures savings of $23 billion over four years to responsibly fund tax relief and provide an additional boost to priority frontline services. A $7 billion boost to capital funding, via a top-up to the Multi-Year Capital Allowance, so we can invest in the infrastructure needed for future growth and resilience.

New Zealand Finance Minister Nicola Willis stated that the Treasury sees inflation falling to below 3% in Q3 and easing to 2% around 2026. The New Zealand treasury sees NZ GDP contracting in H1 2024, and growth in H2 2024.

On USD’s front, the hawkish remarks from US Federal Reserve (Fed) officials have heightened concerns about potential rate hikes, fueling risk aversion sentiment. This supported the US Dollar (USD), undermining the NZD/USD pair.

However, the downward correction in the US Treasury yields put pressure on the US Dollar, limiting the losses of the NZD/USD pair. Traders await the release of US Gross Domestic Product Annualized (Q1) data on Thursday and the Core Personal Consumption Expenditures (PCE) Price Index data on Friday.

NZD/USD

Overview
Today last price	0.6101
Today Daily Change	-0.0015
Today Daily Change %	-0.25
Today daily open	0.6116

Trends
Daily SMA20	0.6069
Daily SMA50	0.6007
Daily SMA100	0.6067
Daily SMA200	0.6046

Levels
Previous Daily High	0.6151
Previous Daily Low	0.6111
Previous Weekly High	0.6153
Previous Weekly Low	0.6083
Previous Monthly High	0.6079
Previous Monthly Low	0.5851
Daily Fibonacci 38.2%	0.6126
Daily Fibonacci 61.8%	0.6136
Daily Pivot Point S1	0.6101
Daily Pivot Point S2	0.6086
Daily Pivot Point S3	0.6061
Daily Pivot Point R1	0.6141
Daily Pivot Point R2	0.6166
Daily Pivot Point R3	0.6181

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.