NZD/USD Price Forecast: Focus shifts to 0.5850 support area as risk appetite fades
- NZD/USD extends losses for the second consecutive day, approaching the bottom of the last two weeks' trading range, at 0.5850.
- Fading hopes of a swift peace deal in Iran have hurt risk appetite this week.
- The Kiwi dollar has a cluster of support ahead of the 0.5800 level.
The New Zealand Dollar (NZD) nudges lower against a firmer US Dollar (USD) for the second consecutive day on Tuesday, as doubts about the fate of the US-Iran peace negotiations hurt market confidence and boost Oil prices higher. The NZD/USD pair remains trading within the last two weeks’ range, but the focus has shifted to the 0.5850 support, from the resistance at the 0.5900 area.
In the US, hawkish comments by Cleveland Federal Reserve (Fed) President Beth Hammack offset the negative impact from the weak US Nonfarm Payrolls report on Monday and provided some support to the US Dollar.
FX volatility, however, remains subdued this week, with investors split about the outcome of September's Fed meeting. In this context, all eyes are on Wednesday's US Consumer Prices Index (CPI) report, which is expected to provide further certainty about the central bank's near-term rate path.
Technical Analysis: Kiwi hovers above a set of key supports ahead of 0.5800
NZD/USD keeps treading wated within a narrow range below 0.5900, yet with technical indicators showing fading bullish momentum, which shifts the focus towards the channel bottom, at a previous resistance area near 0.5850. The 14-period Relative Strength Index in the daily chart is hovering near 59, while the Moving Average Convergence Divergence (MACD) in the same timeframe shows moderately positive levels, although the narrowing histogram suggests that bulls are losing steam.
Bears, however, are likely to face significant hurdles at the mentioned 0.5850 support area and, above all, at the confluence of the key 200-day SMA with the uptrend support line, around 0.5825. Further down, a break of the late-July lows, near 0.5760 would confirm a trend shift.
On the topside, initial resistance is seen at the 78.6% Fibonacci retracement level of June's selloff, at 0.5916, ahead of the May and June top near 0.6000.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.07% | 0.00% | -0.05% | -0.07% | 0.11% | 0.07% | |
| EUR | -0.09% | -0.02% | -0.07% | -0.12% | -0.12% | 0.03% | -0.02% | |
| GBP | -0.07% | 0.02% | -0.06% | -0.11% | -0.11% | 0.04% | -0.01% | |
| JPY | 0.00% | 0.07% | 0.06% | -0.05% | -0.06% | 0.09% | 0.06% | |
| CAD | 0.05% | 0.12% | 0.11% | 0.05% | 0.00% | 0.15% | 0.10% | |
| AUD | 0.07% | 0.12% | 0.11% | 0.06% | -0.00% | 0.15% | 0.10% | |
| NZD | -0.11% | -0.03% | -0.04% | -0.09% | -0.15% | -0.15% | -0.04% | |
| CHF | -0.07% | 0.02% | 0.00% | -0.06% | -0.10% | -0.10% | 0.04% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Guillermo Alcala
FXStreet
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.
