• Federal Reserve officials’ hawkish commentary bolstered the US Dollar, except against the New Zealand Dollar.
  • US Existing Home Sales tanked, flashing an upcoming recession in the United States.
  • Reserve Bank of New Zealand’s upcoming monetary policy meeting would determine NZDUSD direction

The New Zealand Dollar (NZD) regained composure and finished the week up by 0.50% against the US Dollar (USD), albeit hawkish commentary by Federal Reserve (Fed) officials bolstered the US Dollar (USD). Additionally, an upbeat market sentiment strengthened risk-perceived assets in the FX markets, the New Zealand Dollar. Hence, the NZDUSD is trading at 0.6150, above its opening price by 0.39%.

Federal Reserve officials warranted that further rate hikes are coming

During the week, Federal Reserve officials remained hawkish after the Consumer Price Index (CPI) and the Producer Price Index (PPI) reports for the United States (US) were softer than expected, meaning that inflation is cooling down. That said, US equities rallied, while US Treasury bond yields and the US Dollar plunged due to growing speculations that the Fed could pivot sooner than expected.

Nevertheless, policymakers led by the St. Louis Fed President James Bullard, who said that interest rates are not “sufficiently restrictive” and added that would be if the Federal Funds rate (FFR) hit the 5% to 5.25% area. Echoing his comments was Minnesota’s Fed President Neil Kashkari, stating that one-month data can’t over-persuade the Fed, as it needs to keep at it until they’re sure that inflation has stopped climbing. On Friday, the Boston Fed President Susan Collins noted that the Federal Reserve needs to continue hiking rates, adding that rates will need to keep high for some time.

US Existing Home Sales plummet, weakens the US Dollar

Data-wise, US Existing Home Sales for October plunged a staggering 5.9%, below a 4.17% increase estimated by analysts. Home sales have fallen since February of 2022 due to the Federal Reserve’s tightening monetary conditions as they try to curb stubbornly high inflation, which peaked around 9%. Following the release, the NZDUSD edged slightly up, though it retraced below 0.6180, to finish the day around current exchange rates.

New Zealand Dollar traders focused on RBNZ’s policy decision

An absent New Zealand’s economic calendar left the NZD adrift to USD dynamics and market sentiment. During the Asian session, China’s Covid-19 outbreak and geopolitical risk put a lid on the earlier NZDUSD rally, which could not decisively crack the 0.6200 psychological level. The week ahead, the New Zealand docket will feature the Balance of Trade for October, Retail Sales, and the Reserve Bank of New Zealand (RBNZ) monetary policy meeting, with analysts expecting a 75 bps rate hike.

On the US front, the economic calendar for the United States will feature the Chicago Fed National Activity Index, Durable Good Orders, housing data, and Initial Jobless Claims. Also, further Federal Reserve officials would cross newswires.

NZDUSD Price Analysis: Technical outlook

The New Zealand Dollar (NZD) ended the week almost flat after hitting a weekly high of 0.6203. Failure to crack the latter keeps the NZD exposed to selling pressure. Notably, the 0.6200 figure was tested three times, and with the Relative Strength Index (RSI) exiting overbought conditions, aiming slightly lower, a fall toward the 100-day Exponential Moving Average (EMA) at 0.6015 is on the cards.

NZDUSD key support levels lie at 0.6100, followed by the downslope top-trendline of a descending channel around 0.6065, followed by the 100-day EMA at 0.6015. On the flip side, the NZDUSD’s first resistance would be the 0.6200 mark, followed by the August 25 daily high at 0.6251, ahead of the 200-day EMA at 0.6308.

NZD/USD

Overview
Today last price 0.6153
Today Daily Change 0.0024
Today Daily Change % 0.39
Today daily open 0.6129
 
Trends
Daily SMA20 0.591
Daily SMA50 0.5823
Daily SMA100 0.6018
Daily SMA200 0.6315
 
Levels
Previous Daily High 0.6169
Previous Daily Low 0.6064
Previous Weekly High 0.613
Previous Weekly Low 0.5841
Previous Monthly High 0.5874
Previous Monthly Low 0.5512
Daily Fibonacci 38.2% 0.6104
Daily Fibonacci 61.8% 0.6129
Daily Pivot Point S1 0.6072
Daily Pivot Point S2 0.6016
Daily Pivot Point S3 0.5967
Daily Pivot Point R1 0.6177
Daily Pivot Point R2 0.6226
Daily Pivot Point R3 0.6282

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

BOE hikes policy rate by 50 bps to 4%, ECB is next – LIVE

BOE hikes policy rate by 50 bps to 4%, ECB is next – LIVE

The Bank of England (BoE) raised its policy rate by 50 bps to 4% as expected and noted that it could further tighten the policy if needed, helping GBP/USD rebound modestly. Eyes on Governor Bailey's press conference and the European Central Bank's (ECB) policy announcements.

FOLLOW US LIVE

EUR/USD holds near 1.1000, eyes on ECB

EUR/USD holds near 1.1000, eyes on ECB

EUR/USD is trading in a narrow channel at around 1.1000, as buyers stay on the sidelines ahead of the ECB policy decision. The pair is sitting close to the highest level in 10 months, as the US Dollar licks the dovish Fed decision-inflicted wounds. 

EUR/USD News

Gold holds steady near $1,950 as US yields stay calm

Gold holds steady near $1,950 as US yields stay calm

Gold price consolidates Wednesday's impressive gains and moves up and down in a relatively narrow channel slightly above $1,950. Following the post-Fed decline, the 10-year US Treasury bond yield holds steady slightly above 3.4%, limiting XAU/USD's upside.

Gold News

Altcoin ascension: MAGIC, Optimism and Stargate Finance rally 20% after Powell's comments

Altcoin ascension: MAGIC, Optimism and Stargate Finance rally 20% after Powell's comments

MAGIC, Optimism and Stargate Finance have rallied beyond 20% after the US Fed’s policy meeting on Wednesday. The rallies are facing crucial hurdles and could trigger a correction.

Read more

Meta Platforms (META) Stock Earnings and Forecast: Facebook parent rockets 20% afterhours

Meta Platforms (META) Stock Earnings and Forecast: Facebook parent rockets 20% afterhours

Well, well, well. It appears that Facebook and Instagram parent Meta Platforms (META) has duly mended its frayed relationship with Wall Street.

Read more

Forex MAJORS

Cryptocurrencies

Signatures