- The NZD/USD is getting some much-needed lift heading into the Tuesday market session.
- Thin New Zealand showing on the economic calendar to leave the Kiwi exposed to USD flows.
- Later Tuesday sees another round of US PMI data for October.
The NZD/USD is catching some bids into 0.5850 as broad market risk appetite stabilizes heading into a bumper week of US data readings.
The economic calendar is notably absent any meaningful Kiwi-based figures for NZD traders to chew on, leaving the NZD/USD to get pushed around by market reactions to US growth and inflation figures.
Tuesday sees US Purchasing Manager Index (PCI) figures for October, and both components of the PMI are forecast to decline, albeit slightly: the Manufacturing PMI is expected to tick down from 49.8 to 49.5, while the Services PMI is seen declining from 50.1 to 49.9, slipping back into expected contraction territory to match manufacturing expectations.
Wednesday follows up with a speech from Federal Reserve (Fed) Chairman Jerome Powell, followed by US Gross Domestic Product (GDP) figures on Thursday; US GDP is expected to accelerate in the third quarter, from 2.1% to 4.2% for the annualized period into 3Q.
Friday will close out the trading week with another inflation headline for the US: Personal Consumption Expenditure (PCE) Index data for September is expected to increase from 0.1% to 0.3%.
Accelerations in underlying inflation figures for the US bode poorly for broad market sentiment as investors are hoping for a walk back on interest rate expectations from the Fed, but sticky inflation will prove a difficult hurdle for the US central bank to overcome before they can start bringing rates down. The Fed's current "dot plot" doesn't see any rate cuts until the latter half of 2024 as it currently stands.
NZD/USD Technical Outlook
The Kiwi remains trapped under long-term bearish momentum despite Monday's relief rally, and the pair continues to waffle near twelve-month lows.
Technical support is limited just north of the 0.5800 handle, while the 50-day Simple Moving Average (SMA) is punishing down on price action from 0.5927.
A bullish recovery will need to overcome the 0.6000 major psychological handle, with the near-term ceiling sitting at the last swing high into 0.6056, while a downside break will see the NZD/USD set for a run at old support levels originally chalked in from late 2022 near the 0.5600 level.
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
AUD/USD plummets to 0.6250, two-day lows
AUD/USD now retreats from the area of daily highs north of 0.6300 the figure and revisits the mid-0.6200s as investors continue to digest Trump's announcements on "Liberation Day".
EUR/USD loses the grip and retests 1.0800
The US Dollar is now picking up further pace and sends EUR/USD back to the 1.0800 neighbourhood following President Trump's announcements of reciprocal tariffs on Wednesday.
Gold remains well bid near $3,140 post-Trump tariffs
Gold maintains its bullish stance well in place and trade near its record highs in the wake of President Trump's announcement of reciprocal tariffs. In addition, declining US yields also collaborate with the metal's bounce.
Grayscale launches Bitcoin options ETF with a focus on income generation
In a press release on Wednesday, Grayscale announced the launch of Bitcoin options-based ETFs, the Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI).
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.