- The NZD/USD gains three-quarters of a percent on Friday to etch in a seventh straight gain.
- The Kiwi is up 2% against the US Dollar heading into the tail end of Friday's trading session.
- Thin Kiwi data next week gives way to another bout of US NFP data next Friday.
The NZD/USD is continuing its climb as the Kiwi (NZD) stands out as the single best-performing currency of the major currencies bloc, up 2% against the US Dollar (USD) for the trading week.
An improving economic outlook coupled with a hawkish Reserve Bank of New Zealand (RBNZ) is bolstering the NZD across the board. The Kiwi is climbing into the 0.6200 handle against the Greenback for the second time in three days.
The RBNZ held interest rates at 5.5% this week, but a hawkish stance from New Zealand’s central bank is propping up the Kiwi, with RBNZ officials actively weighing additional rate hikes with inflation continuing to fall outside of the RBNZ’s target 1-3% band for so long.
Consumer sentiment and business outlook surveys continue to rise, with the New Zealand ANZ Roy Morgan Consumer Confidence survey index rising to a yearly high of 91.9 early Friday, adding further momentum to the NZD/USD heading into the week’s end.
Next week has a fairly thin showing for the Kiwi on the economic data calendar, but eyes will be turning towards next Friday’s US Non-Farm Payrolls release, where the US is expected to see a marginal gain in the number of new job hires from 150K to 170K in November.
NZD/USD Technical Outlook
The NZD/USD is set to close in the green for twelve of the last fourteen consecutive trading days, and as long as the pair holds near the 0.6200 handle into the Friday closing bell that will etch in seven straight days of gains.
The Kiwi-Dollar pairing has climbed 7.5% from October’s bottom bids of 0.5772, and a continuation of recent bullish momentum will see a new long-term trend form up and take a challenge run at July’s swing high into 0.6400.
The NZD/USD easily slipped through the 200-day Simple Moving Average (SMA) last week as the Kiwi’s near-term trend rotates firmly bullish, and bulls will be fresh and ready for a leg higher as long as a retracement doesn’t take the pair back below the 200-day SMA at the 0.6100 handle.
NZD/USD Daily Chart
NZD/USD Technical Levels
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
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.