- The NZD/USD gains despite mixed market sentiment but struggles at 0.7200.
- The commodity currencies edge higher against the greenback.
- NZD/USD: The daily chart confirms the upward bias, but NZD bulls, to accelerate the trend, will need to reclaim 0.7200.
The NZD/USD advances for the fourth consecutive day, despite mild risk-off market sentiment is up 0.27%, trading at 0.7183 during the New York session at the time of writing.
Major US equity stocks are mixed as the New York session wanes. The S&P and the Nasdaq Composite rise 0.09% and 0.94%, respectively, while on the other hand, the Dow Jones losses 0.27%. Investors remain at bay due to month-end flows, US fiscal policy uncertainties, and central bank pandemic-stimulus ends.
That said, antipodean currencies and the Canadian dollar advance against the greenback. Meanwhile, the US Dollar Index, which tracks the buck’s performance against a basket of its peers, slumps 0.16%, sits at 93.79.
It is worth noting that on Wednesday, the Bank of Canada ended its weekly QE program, adding to the Reserve Bank of New Zealand as the only central banks, that are normalizing their monetary policy.
Turning to US fiscal policy, according to wires, US President Joe Biden reportedly agreed to push for a deal as soon as possible in a meeting with lawmakers. Also, the US Senate Finance Committee Chairman Ron Wyden unveiled a 23.8% tax proposal focused on unrealized gains of assets held by billionaires, affecting 700 people.
Macroeconomic data from New Zealand reported that the ANZ Business Confidence dropped from -8.6 in September to -13.4 in October. Furthermore, Statistics of New Zealand said that the Trade Balance deficit expanded in September.
Meanwhile, in the US economic docket, Durable Good Orders for September contracted by 0.4%, less than the 1.1% expected by analysts. On the other hand, the Nondefense orders, excluding aircraft, expanded by 0.8%, higher than the 0.5% estimated.
NZD/USD Price Forecast: Technical outlook
The NZD/USD daily chart depicts the pair has a bullish bias, portrayed by daily moving averages (DMA’s) beneath the spot price, with an upward slope.
Furthermore, the Relative Strength Index (RSI), a momentum indicator at 66, edges slightly up, confirming the abovementioned, but the trend seems to fade. NZD bulls to accelerate the upward trend speed will need a daily close above 0.7200. In that outcome, they will find immediate resistance at 0.7219. A clear break of the latter would expose crucial supply zones, the June 7 high at 0.7244, followed by the 0.7300 thresholds.
NZD/USD TECHNICAL LEVELS TO WATCH
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.