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NZD/USD Price Forecast: Hits four-week top on hawkish RBNZ; eyes 0.5810-0.5820 confluence

  • NZD/USD gains strong positive traction in reaction to hawkish comments from RBNZ’s Conway.
  • The USD pauses ahead of the US CPI and Fed’s Warsh, lending additional support to spot prices.
  • Bulls might now await a move beyond the 0.5810-0.5820 confluence before placing fresh bets.

The NZD/USD pair catches aggressive bids during the Asian session on Tuesday and jumps to a nearly four-week top in the last hour amid a combination of supporting factors.

The New Zealand Dollar (NZD) strengthens as hawkish comments from Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway raised the prospect of further interest rate hikes. The US Dollar (USD), on the other hand, pauses a two-day rally as bulls opt to wait for the release of the latest US consumer inflation figures and US Federal Reserve (Fed) Chair Kevin Warsh's testimony. This, in turn, provides a goodish lift to the NZD/USD pair and backs the case for additional gains.

From a technical perspective, spot prices now seem to have found acceptance above the 38.2% Fibonacci retracement level of the May-June downfall. Moreover, the Moving Average Convergence Divergence (MACD) indicator has turned positive with the line advancing above zero, while the Relative Strength Index (RSI) hovers around 57, hinting at improving momentum. That said, it will still be prudent to wait for a move beyond the 0.5810-0.5820 confluence before placing fresh bullish bets.

The said area comprises the 50% retracement level and the 200-day Simple Moving Average (SMA), above which the NZD/USD pair could aim to test the 61.8% Fibo. level at 0.5853. The latter reinforces a broader cap ahead of 0.5914 and 0.5992. On the flip side, immediate support is seen at the 38.2% retracement at 0.5767, ahead of the 23.6% level at 0.5714, while a deeper pullback would expose the recent swing low area near the 0.5628 region.

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

NZD/USD daily chart

Chart Analysis NZD/USD

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 US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.09%-0.10%-0.10%-0.18%-0.19%-0.64%-0.12%
EUR0.09%-0.01%0.00%-0.09%-0.11%-0.54%-0.03%
GBP0.10%0.01%0.02%-0.06%-0.08%-0.53%-0.02%
JPY0.10%0.00%-0.02%-0.08%-0.12%-0.56%-0.05%
CAD0.18%0.09%0.06%0.08%-0.03%-0.46%0.05%
AUD0.19%0.11%0.08%0.12%0.03%-0.43%0.09%
NZD0.64%0.54%0.53%0.56%0.46%0.43%0.51%
CHF0.12%0.03%0.02%0.05%-0.05%-0.09%-0.51%

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

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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