NZD/USD Price Analysis: Pair faces resistance at 20-day SMA, momentum persists

NZD/USD declined to 0.5895 on Thursday.
Pair rejected at 20-day SMA and indicators lost some steam, but may have momentum to conquer the SMA.
As long as the pair holds below the 20-day SMA, the outlook for the short-term will be negative.

Patricio Martín FXStreet

The NZD/USD declined slightly in Thursday's session, reaching a low of 0.5895, before recovering some ground. Overall, the momentum seems to be mixed. The pair has been in a downtrend since late September, and the short-term outlook remains negative as long as it remains below the 20-day Simple Moving Average (SMA).

The technical indicators present conflicting signals. The Relative Strength Index (RSI) is currently at 47, indicating that it is in negative territory and suggests that selling pressure is present. On the other hand, the Moving Average Convergence Divergence (MACD) histogram is green and rising, indicating that buying pressure is rising. This divergence suggests that while there may be some selling pressure, there is also significant buying interest in the market.

Despite facing resistance at the 20-day SMA, NZD/USD maintains momentum from recent gains, with indicators suggesting both buying and selling pressure present. However, the downward trend continues as long as the pair remains below the mentioned SMA. When American traders return from Thanksgiving’s holiday, the pair may see further volatility which might set the direction of the pair.

NZD/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold sticks to modest losses amid Fed hike bets; holds above $4,100 ahead of US CPI

Gold meets fresh supply, eroding a part of the previous day's strong gains to the $4,150 resistance zone, albeit it holds above the $4,100 mark heading into the European session. Firming US Federal Reserve rate-hike expectations turn out to be a key factor driving flows away from the non-yielding bullion. Meanwhile, the US Dollar struggles to lure buyers amid mixed signals regarding the state of diplomatic talks between the US and Iran, offering some support to the commodity as traders seem hesitant ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.