NZD/USD loses momentum below 0.6200 following the New Zealand GDP data

NZD/USD loses ground near 0.6175 following the weaker New Zealand GDP data.
New Zealand's economy in Q3 contracted by 0.3% QoQ vs. 0.5% prior, below the 0.2% expected.
The Federal Reserve (Fed) kept the interest rates steady at its December meeting on Wednesday, as widely expected.
Traders will focus on the US weekly Jobless Claims and Retail Sales.

Lallalit Srijandorn FXStreet

The NZD/USD pair holds ground around 0.6175 after facing a rejection around the 0.6200 mark during the early Asian session on Thursday. The downbeat New Zealand’s GDP growth numbers drag the New Zealand Dollar (NZD) lower. However, the downside of the pair seems limited as investors digest the outcome of the Federal Reserve meeting.

The latest data from Statistics New Zealand on Thursday revealed that the nation’s economy in the third quarter (Q3) contracted by 0.3% QoQ versus the 0.2% expansion expected and a 0.5% rise prior. Additionally, the annual GDP shrank 0.6% compared with the 1.5% growth in Q2, worse than the market expectation of a 0.5% increase. In response to the data, the Kiwi attracts some sellers against the USD.

On the USD’s front, the Greenback has dropped sharply after the Federal Reserve (Fed) meeting. The central bank decided to keep interest rates unchanged at its December meeting, as widely expected. The Fed now anticipates three rate cuts next year rather than two, according to interest rate projections. Regarding a drop in inflation, the likelihood of the Fed cutting interest rates before the middle of next year has increased.

During the press conference, Fed Chair Jerome Powell said that the inflation battle isn’t over, but central bank policymakers will start to discuss policy easing amid signs of cooling in both inflation and the labor market. The dovish comments from Powell exert some selling pressure on USD.

Looking ahead, market players will keep an eye on the US weekly Jobless Claims and Retail Sales for November, due later on Thursday. On Friday, the Business NZ Purchasing Managers' Index (PMI) and US S&P Global PM will be released. Traders will take cues from these data and find trading opportunities around the NZD/USD pair.

NZD/USD

Overview
Today last price	0.6175
Today Daily Change	0.0044
Today Daily Change %	0.72
Today daily open	0.6131

Trends
Daily SMA20	0.6097
Daily SMA50	0.5982
Daily SMA100	0.5979
Daily SMA200	0.6088

Levels
Previous Daily High	0.617
Previous Daily Low	0.6104
Previous Weekly High	0.6223
Previous Weekly Low	0.6103
Previous Monthly High	0.6208
Previous Monthly Low	0.5788
Daily Fibonacci 38.2%	0.6145
Daily Fibonacci 61.8%	0.6129
Daily Pivot Point S1	0.61
Daily Pivot Point S2	0.6069
Daily Pivot Point S3	0.6034
Daily Pivot Point R1	0.6166
Daily Pivot Point R2	0.6201
Daily Pivot Point R3	0.6232

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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