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NZD/USD Price Forecast: Bears taking control with 0.5930 support under pressure

  • NZD/USD is testing support at the 0.5930 area after rejection at 0.5967.
  • Hot US inflation figures and concerns about the US-Iran deadlock are underpinning the US Dollar.
  • The Kiwi depreciated after the release of the RBNZ's inflation expectations earlier on Wednesday.

The New Zealand Dollar (NZD) is showing the weakest performance of the G8 currencies on Wednesday, heading lower for the second consecutive day against a stronger US Dollar (USD), with NZD/USD bears testing the bottom of the weekly range at 0.5930 at the time of writing.

The US Dollar is drawing support from waning hopes of further Federal Reserve (Fed) rate cuts, following strong US Consumer Price Index (CPI) figures on Tuesday, and investors’ concerns about the stalemate in the US-Iran conflict. In New Zealand, the increase in the Reserve Bank of New Zealand’s (RBNZ) Inflation Expectations has failed to support the Kiwi.

Technical Analysis: Below 0.5930, the next target is the 0.5870 area

Chart Analysis NZD/USD

NZD/USD shows a slightly offered near-term tone on Wednesday. The 4-hour Relative Strength Index (RSI) has dropped below the 50 line with a negative Moving Average Convergence Divergence (MACD) histogram, reinforcing the view of a waning bullish momentum after the recent pullback.

Bears are testing support in the area between 0.5925 and 0.5935 (April 17 and May 4 highs and May 8 and 12 lows). If this area gives way, the next bearish target will be the May 5 intraday low, right above 0.5870. Further down, the April 29 low, at 0.5815.

On the topside, immediate resistance emerges at the 0.5970 area, which held bulls on May 8 and 11, ahead of the May 6 high at 0.5991.

(The technical analysis of this story was written with the help of an AI tool.)

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 Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.26%0.09%0.11%0.04%0.00%0.37%0.19%
EUR-0.26%-0.18%-0.15%-0.22%-0.27%0.09%-0.10%
GBP-0.09%0.18%0.02%-0.04%-0.08%0.29%0.09%
JPY-0.11%0.15%-0.02%-0.07%-0.11%0.22%0.09%
CAD-0.04%0.22%0.04%0.07%-0.04%0.32%0.13%
AUD-0.00%0.27%0.08%0.11%0.04%0.37%0.19%
NZD-0.37%-0.09%-0.29%-0.22%-0.32%-0.37%-0.17%
CHF-0.19%0.10%-0.09%-0.09%-0.13%-0.19%0.17%

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).

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Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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