NZD/USD Price Forecast: Nearing 0.5860 support area amid by risk-off markets, domestic politics
- NZD/USD extends losses for the third consecutive day to test support at 0.5860.
- A mild risk-off mood amid Middle East tensions and political uncertainty at home are weighing on the Kiwi Dollar.
- The pair has a cluster of supports ahead of the 0.5800 level.
The New Zealand Dollar (NZD) accelerates its reversal against the US Dollar (USD) on Wednesday, weighed by cautious markets amid growing tensions in the Middle East and political uncertainty at home. NZD/USD bears are testing support at the 0.5860 area, down from last week's highs above 0.5900, against a firmer USD ahead of July’s US inflation data.
New Zealand’s Prime Minister, Christopher Luxon, survived a confidence vote on Wednesday, following a challenge from his defence minister, which adds to evidence of the divergences within the ruling National Party less than three months ahead of New Zealand’s elections
Beyond that, tensions in the Middle East flare up as reports of attacks on two vessels complicate the entangled US-Iran negotiating process even further. The risk-sensitive NZD is coming under pressure although volatility remains subdued, as traders await the release of July’s US Consumer Prices Index (CPI) report, due later on the day.
Technical Analysis: Key support is at the 0.5830 area
NZD/USD trades at 0.5865 after depreciating for three consecutive days, with bears aiming to break the bottom of the last two weeks' trading range, at the 0.5860 area. Momentum indicators in the daily chart remain at positive levels but show a fading impulse. The Relative Strength Index (14) is trending towards the 50 midline, and the Moving Average Convergence Divergence (MACD) line is attempting to cross below the Signal line, which is a bearish sign.
A clear break below the mentioned 0.5860 level would expose a key support area in the confluence of the ascending trendline from late June lows, now around 0.5835, and the 200-day SMA, a popular indicator, which would cross the price at around 0.5830. Further down, the next target is the late July lows, near 0.5760.
On the topside, immediate resistance emerges at the 78.6% Fibonacci retracement of June's selloff, at 0.5916, and beyond that, 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.)
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 Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | -0.02% | 0.06% | 0.04% | 0.02% | 0.19% | 0.14% | |
| EUR | -0.03% | -0.05% | 0.02% | 0.02% | -0.05% | 0.20% | 0.10% | |
| GBP | 0.02% | 0.05% | 0.06% | 0.05% | 0.02% | 0.24% | 0.16% | |
| JPY | -0.06% | -0.02% | -0.06% | -0.02% | -0.06% | 0.15% | 0.08% | |
| CAD | -0.04% | -0.02% | -0.05% | 0.02% | -0.04% | 0.19% | 0.09% | |
| AUD | -0.02% | 0.05% | -0.02% | 0.06% | 0.04% | 0.22% | 0.16% | |
| NZD | -0.19% | -0.20% | -0.24% | -0.15% | -0.19% | -0.22% | -0.07% | |
| CHF | -0.14% | -0.10% | -0.16% | -0.08% | -0.09% | -0.16% | 0.07% |
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
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.
