empty
17.12.2024 03:15 PM
NZD/USD: Analysis and Forecast – Pair Under Pressure from Multiple Factors

This image is no longer relevant

The NZD/USD pair remains under pressure from several key factors.

This image is no longer relevant

Today, the pair attracts new sellers, continuing its steady intraday decline. Spot prices have dropped to 0.5755 and remain near the lowest level since October 2022, reached on Monday.

Key Factors Driving the Decline:

  1. Dovish RBNZ:The New Zealand dollar continues to weaken due to the dovish stance of the Reserve Bank of New Zealand (RBNZ) and expectations of more aggressive policy easing by the central bank.
  2. China's Economic Concerns:Worries over China's economic recovery and escalating fears of a US-China trade war are additional factors undermining Antipodean currencies, including the NZD.
  3. US Dollar Strength:Simultaneous US dollar buying further pressures the NZD/USD pair lower. Signs that progress toward achieving the 2% inflation target in the United States has stalled have convinced investors that the Federal Reserve will slow the pace of rate cuts next year.
    • Expectations that Donald Trump's policies (if re-elected) could lead to higher inflation and government borrowing continue to support elevated US Treasury yields.
    • Alongside this, geopolitical risks arising from the escalating Russia-Ukraine conflict and tensions in the Middle East bolster the safe-haven US dollar.

Focus on Key Events:

  • US Retail Sales Data:Traders should watch the release of monthly retail sales data from the United States for short-term opportunities.
  • FOMC Meeting:However, the main focus remains on the outcome of the crucial two-day FOMC meeting on Wednesday. Investors will closely analyze the accompanying policy statement and Fed Chair Jerome Powell's speech for clues regarding the future path of interest rate cuts. His comments will influence the short-term USD price dynamics, adding new directional momentum to the NZD/USD pair.

Technical Outlook

From a technical perspective:

  • Oscillators on the daily chart remain deeply in negative territory and far from oversold conditions.
  • This indicates that the path of least resistance for the pair remains to the downside.

In conclusion, while short-term movements may be influenced by upcoming US data and the FOMC outcome, broader fundamentals and technical indicators continue to suggest a bearish outlook for NZD/USD.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

According to data released today by Japan's Cabinet Office, the Japanese economy grew by 1% year-on-year in the April–June period. This figure significantly exceeded analysts' expectations of 0.4% growth

Irina Yanina 12:47 2025-08-15 UTC+2

XAU/USD. Analysis and Forecast

Gold is attempting to recover its upward momentum, partially offsetting the previous day's losses, but the market remains uncertain about further movement. The U.S. dollar is exerting a favorable influence

Irina Yanina 12:42 2025-08-15 UTC+2

Gold Prices Drop Sharply

Yesterday, gold prices returned to a one-week low after traders reduced expectations for a Federal Reserve rate cut next month following an increase in inflation. The strengthening of the U.S

Jakub Novak 12:14 2025-08-15 UTC+2

U.S. Economy Remains Resilient

While the U.S. dollar is trying to hold on to the recent gains it secured from yesterday's strong U.S. inflation data, Richmond Federal Reserve Bank President Thomas Barkin said Thursday

Jakub Novak 12:06 2025-08-15 UTC+2

US Dollar Surged Sharply but Has Almost Lost All Its Gains

The US dollar rose sharply against a number of risk assets, but has since almost given back all of its gains. The rally came after news that the US Producer

Jakub Novak 11:39 2025-08-15 UTC+2

Market shrugs off PPI spike

Markets once again brushed off bad news. The S&P 500 managed to close higher, holding up against the hit from the Producer Price Index. On a monthly basis

Marek Petkovich 09:37 2025-08-15 UTC+2

Is the PPI Dynamics Useful for Markets? (Possible Resumption of Growth in Bitcoin and GBP/USD)

The producer inflation data released on Thursday unexpectedly had a noticeable, albeit limited, impact on financial markets. However, the shock was neither deep nor long-lasting. Let's try to understand

Pati Gani 09:13 2025-08-15 UTC+2

What to Pay Attention to on August 15? A Breakdown of Fundamental Events for Beginners

There are not many macroeconomic releases scheduled for Friday, but there will be some. In Germany, the UK, and the Eurozone, the event calendars are empty, but in the U.S

Paolo Greco 06:53 2025-08-15 UTC+2

GBP/USD Overview – August 15: Even the UK Economy Supports Growth

The GBP/USD currency pair spent most of Thursday moving sideways, but there is no reason to think the uptrend has ended. The pound sterling has been steadily rising since completing

Paolo Greco 03:50 2025-08-15 UTC+2

EUR/USD Overview – August 15: A Decisive Friday

The EUR/USD currency pair pulled back slightly on Thursday, but this retracement has no real impact. Ahead lies an event of major importance not only for Europe, the United States

Paolo Greco 03:50 2025-08-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.