|

NZD/USD Price Forecast: Bears lean on 0.5700 as RSI sinks

  • NZD/USD extends two-day slide after hawkish Fed signals.
  • RSI nears oversold territory as sellers pressure 0.5700 support.
  • Break below 0.5700 exposes 0.5671, 0.5650 and 0.5626.

The New Zealand Dollar extends its losses for the second straight trading session, down 0.13% after last week’s Fed rate hike and a hawkish tilt within the board, which was reinforced by speeches of Fed officials on Monday. The NZD/USD trades at 0.5717.

NZD/USD Price Forecast: Technical Outlook

The market's structure shows the NZD/USD remains in consolidation, with the pair trading near a two-month low spotted on September 16 at 0.5703, for the fourth straight session. Momentum, as measured by the Relative Strength Index (RSI), shows that sellers are gaining steam, with the index being bearish and about to turn oversold.

If NZD/USD dives below 0.5700, a potential move to the July 8 low of 0.5671 is on the cards. Below, the next area of interest is 0.5650, followed by the June 26 low of 0.5626. If hurdled, 0.5600 is up next.

On the upside, if Kiwi buyers clear the September 18 high of 0.5787, a move to 0.5800 is on the cards. If hurdled, the pair would gain some strength but face key resistance levels at the 100-day Simple Moving Average (SMA) at 0.5833, followed by the confluence of the 200- and 50-day SMA at 0.5853.

NZD/USD Price Chart – Daily

NZD/USD daily chart

New Zealand Dollar Price Today

The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.13%0.18%0.27%0.33%0.06%0.12%-0.18%
EUR-0.13%-0.01%0.09%0.16%-0.12%-0.09%-0.36%
GBP-0.18%0.00%0.08%0.15%-0.10%-0.10%-0.34%
JPY-0.27%-0.09%-0.08%0.06%-0.25%-0.14%-0.40%
CAD-0.33%-0.16%-0.15%-0.06%-0.29%-0.22%-0.49%
AUD-0.06%0.12%0.10%0.25%0.29%0.06%-0.22%
NZD-0.12%0.09%0.10%0.14%0.22%-0.06%-0.27%
CHF0.18%0.36%0.34%0.40%0.49%0.22%0.27%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

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

AUD/USD looks inconclusive near 0.7120

AUD/USD has been struggling for direction on Monday, coming under fresh downside pressure soon after retesting the 0.7140 area and looking to stabilise in the low 0.7100s ahead of the opening bell in Asia on Tuesday. The pair’s daily decline comes on the back of the generalised improvement in the sentiment surrounding the Greenback.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold meets resistance around $4,400

Gold kicks in the new trading with on the back foot, keeping its trade near $4,350 per troy ounce. The precious metal’s correction comes on the back of the firmer US Dollar and espite declining US Treasury yields across the curve.

Bitcoin rallies near $86K on improving markets ahead of quarterly options expiry
Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000. BTC’s price momentum rose from 47.7 to 53.6, representing a 12.5% weekly increase.
The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.