NZD/USD hovers below 0.6350 amid stable US Dollar, Chicago PMI eyed

NZD/USD receives upward support amid stable US Dollar.
The New Zealand Dollar cheers on the possibility of RBNZ delaying policy easing.
The decline in US bond yields put pressure on the Greenback.
Softer US data increases the likelihood of the rate cuts by the Fed in early 2023.

Akhtar Faruqui FXStreet

NZD/USD posts gains after registering losses in Thursday’s session, trading higher around 0.6340 during the Asian session on Friday. The New Zealand Dollar (NZD) demonstrates strength as the Reserve Bank of New Zealand (RBNZ) is expected to potentially delay policy easing. This sentiment is reinforced by the releases of improved Consumer Confidence and Business Confidence data for November.

New Zealand's Gross Domestic Product (GDP) data showed contraction in the third quarter, indicating the impact of the higher RBNZ’s policy rates in the country. Governor Adrian Orr's careful strategy and recognition of upcoming challenges, especially in dealing with high inflation, underscore the intricacies of steering through the economic scenario. Moreover, ANZ analysts predict that a worldwide resurgence in risk appetite, coupled with the advantageous interest rate differential of the NZD, will fuel upward momentum into 2024.

The US Dollar (USD) faces challenges against the Kiwi Dollar (NZD) as the softer economic data from the United States (US) increases the likelihood of the US Federal Reserve (Fed) taking a more accommodative stance in its monetary policy decisions in early 2024.

The Greenback might have faced some resistance as Initial Jobless Claims unexpectedly rose higher than anticipated, reaching 218K for the week ending on December 23, surpassing the market's expectation of 210K. Additionally, Pending Home Sales for November turned flat at 0.0%, falling short of the anticipated 1.0% increase.

The upcoming Chicago Purchasing Managers' Index (PMI) for December, is set to be released on Friday. This adds another layer to our understanding of economic conditions in the Chicago region, contributing valuable insights to the broader assessment of the US economy. With no significant data on the Kiwi's agenda for the next week, traders will turn their attention to China's Caixin Manufacturing PMI for December on Tuesday, recognizing the significance of China and New Zealand's close trade partnership.

NZD/USD: technical levels to watch

Overview
Today last price	0.6344
Today Daily Change	0.0012
Today Daily Change %	0.19
Today daily open	0.6332

Trends
Daily SMA20	0.6221
Daily SMA50	0.6061
Daily SMA100	0.5998
Daily SMA200	0.6092

Levels
Previous Daily High	0.637
Previous Daily Low	0.6323
Previous Weekly High	0.6329
Previous Weekly Low	0.6186
Previous Monthly High	0.6208
Previous Monthly Low	0.5788
Daily Fibonacci 38.2%	0.6341
Daily Fibonacci 61.8%	0.6352
Daily Pivot Point S1	0.6313
Daily Pivot Point S2	0.6294
Daily Pivot Point S3	0.6266
Daily Pivot Point R1	0.636
Daily Pivot Point R2	0.6388
Daily Pivot Point R3	0.6407

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.

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