|

NZD/USD deepens decline as sentiment wanes and US Dollar strengthens

  • NZD/USD prints a daily high of 0.5869 before dropping to 0.5825, losing 0.30% amidst strong USD.
  • US Dollar Index (DXY) gains 0.11%, reaching 106.35, boosted by the Middle East conflict and strong US economic data.
  • New Home Sales in the US rose 12.3% MoM in September, contributing to the Greenback's strength.

NZD/USD extended its losses during the North American session after printing a daily high of 0.5869, but market sentiment deterioration and a strong US Dollar (USD) dragged the exchange rate towards 0.5825, as the pair is losing 0.30%.

NZD/USD drops to 0.5825, losing 0.30% as US Dollar strengthens and Middle East conflict looms

Risk aversion continued to dominate price action as the Greenback (USD) continued to climb, with the US Dollar Index (DXY) gaining 0.11%, up at 106.35, boosted by the Middle East conflict. Although Israel has not begun its ground offensive in Gaza, an escalation that could involve more participants besides Israel and Hamas looms.

Data-wise, the US economic docket featured New Home Sales, which surprisingly rose 12.3% MoM in September, crushing the prior month’s -8.2% contraction, the fastest pace since early 2022.  This data, along with Tuesday’s S&P Global PMIs in the US, revealing that business activity is improving, underpins the Greenback as the chances for a soft-landing increase.

On the Kiwi front, news from China sponsored a leg-up in the NZD/USD towards its daily high, as President Xi Jinping visited the People’s Bank of China (PBoC), China’s central bank aimed to issue additional sovereign debt, as the country struggles to recover from the Covid-19 pandemic measures. Nevertheless, the recovery was short-lived as sentiment shifted sour.

NZD/USD Price Analysis: Technical outlook

After forming an ‘evening-star’ chart pattern, the NZD/USD is resuming its downward bias, though it remains shy of extending its downtrend past the October 23 low of 0.5807. A breach of the latter will expose the 0.588 figure, followed by the November 3, 2022, swing low of 0.5740. Conversely, if buyers reclaim the October 24 high at 0.5872, a challenge of the 0.5900 mark is on the cards.

NZD/USD

Overview
Today last price0.5823
Today Daily Change-0.0021
Today Daily Change %-0.36
Today daily open0.5844
 
Trends
Daily SMA200.5927
Daily SMA500.5927
Daily SMA1000.6044
Daily SMA2000.6144
 
Levels
Previous Daily High0.5874
Previous Daily Low0.5828
Previous Weekly High0.5931
Previous Weekly Low0.5815
Previous Monthly High0.605
Previous Monthly Low0.5847
Daily Fibonacci 38.2%0.5846
Daily Fibonacci 61.8%0.5856
Daily Pivot Point S10.5823
Daily Pivot Point S20.5803
Daily Pivot Point S30.5777
Daily Pivot Point R10.5869
Daily Pivot Point R20.5895
Daily Pivot Point R30.5915

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

EUR/USD keeps the bid bias just over 1.1800

EUR/USD has started the week on a positive foot, hovering around the 1.1800 region in the latter part of Monday’s session. The pair’s recovery comes on the back of a decent decline in the US Dollar, as investors keep their attention on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.