NZD/USD sets new low for 2023 at 0.5815 as Kiwi continues to slide

The NZD/USD hit a new low for the year as the Kiwi loses ground against the US Dollar.
Markets twisted following a dovish showing from Fed Chair Powell, but the Kiwi extends downside momentum.
New Zealand Trade Balance figures failed to inspire meaningful momentum.

Joshua Gibson FXStreet

The NZD/USD slipped into a fresh low for 2023, declining into 0.5815 in Thursday trading before catching a soft bid back into 0.5840, but bearish pressure remains elevated for the beleaguered Kiwi (NZD).

Federal Reserve Chairman Jerome Powell hit markets with dovish comments while giving a speech at the Economic Club of New York, where the Fed head spread his bets, noting that rising yields are helping to alleviate some of the upside pressure on rates, but that inflation concerns remain elevated and the Fed seeing rate cuts on schedule is not a foregone conclusion.

Powell speech: Higher yields take some pressure off Fed to raise rates

New Zealand Trade Balance figures broadly printed close to previous, with September's headline Trade Balance printing at $-2.329B compared to August's $-2.273B, with the previous getting revised downward, albeit slightly, from $-2.291B.

NZD/USD Technical Outlook

The Kiwi's latest decline from the 0.6050 level sees the NZD/USD rejected from the 50-day Simple Moving Average (SMA) near 0.5932, and settling into new lows for 2023.

With the NZD/USD trading into the downside for the year, the pair is seeing its lowest bids in eleven months, and technical support remains thin until last October's lows near 0.5550, while a bullish rebound will face resistance from the 200-day SMA near 0.6150.

NZD/USD Daily Chart

NZD/USD Technical Levels

NZD/USD

Overview
Today last price	0.5842
Today Daily Change	-0.0014
Today Daily Change %	-0.24
Today daily open	0.5856

Trends
Daily SMA20	0.5949
Daily SMA50	0.5938
Daily SMA100	0.6053
Daily SMA200	0.6155

Levels
Previous Daily High	0.5921
Previous Daily Low	0.5851
Previous Weekly High	0.6056
Previous Weekly Low	0.5882
Previous Monthly High	0.605
Previous Monthly Low	0.5847
Daily Fibonacci 38.2%	0.5878
Daily Fibonacci 61.8%	0.5894
Daily Pivot Point S1	0.5831
Daily Pivot Point S2	0.5806
Daily Pivot Point S3	0.5761
Daily Pivot Point R1	0.5901
Daily Pivot Point R2	0.5946
Daily Pivot Point R3	0.5971

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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