empty
13.12.2024 01:29 PM
NZD/USD: New Zealand Dollar Declines Amid Multiple Pressures

This image is no longer relevant

The NZD/USD pair is declining for the fourth consecutive day, extending its weekly downtrend and dropping to the 0.5755 level, setting a new low not seen since November 2022.

This image is no longer relevant

The New Zealand dollar continues to underperform due to the Reserve Bank of New Zealand's (RBNZ) aggressive monetary easing and concerns about the recovery of the Chinese economy.

This image is no longer relevant

On the other hand, the U.S. dollar consolidates its recent gains, reaching a new monthly high and exerting additional downward pressure on the NZD/USD pair.

This image is no longer relevant

Key Drivers:

  1. U.S. Inflation Data: This week's CPI (Consumer Price Index) and PPI (Producer Price Index) reports revealed that progress toward the Federal Reserve's 2% inflation target has effectively stalled. Combined with expectations that expansionary policies under President Trump could drive inflation higher, this suggests that the Federal Reserve might adopt a more cautious stance on rate cuts in the future.
  2. U.S. Treasury Yields: Expectations for a less dovish Fed policy continue to support further increases in U.S. Treasury yields, acting as a tailwind for the U.S. dollar.
  3. Geopolitical Risks: Ongoing geopolitical tensions, including the prolonged Russia-Ukraine conflict, Middle East instability, and renewed fears of a trade war with China, further bolster the U.S. dollar as a safe-haven currency. These developments contribute to capital outflows from the risk-sensitive New Zealand dollar.
  4. RBNZ Policy and China Concerns: The RBNZ's dovish stance and uncertainties surrounding the recovery of the Chinese economy add to the bearish sentiment for the kiwi.

Market Outlook:

On Friday, there are no major U.S. economic data releases expected to drive market movements, leaving the NZD/USD pair under the influence of USD price dynamics. However, the aforementioned fundamental backdrop suggests that the path of least resistance for spot prices remains downward.

Traders are likely to remain cautious ahead of the FOMC's critical monetary policy meeting next week. Oscillators on the daily chart are also nearing oversold territory, indicating that a further sharp decline may be limited in the near term.

Key Levels to Watch:

  • Support: The 0.5750 level serves as immediate support, with potential for a deeper move toward lower levels if breached.
  • Resistance: Any rebound would face resistance around the 0.5800 and 0.5850 levels.
Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
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

Trade Negotiations Between China and the U.S. Are Ongoing. Markets Await Results (There Is a Risk of Local Declines in EUR/USD and GBP/USD Pairs)

Markets have once again paused amid uncertainty over whether a trade agreement between the U.S. and China will be reached anytime soon. The cloud of uncertainty that Donald Trump

Pati Gani 10:04 2025-04-29 UTC+2

The Market Has Licked Its Wounds

The market always keeps us engaged. Despite all the gloomy talk of recession, trade wars, supply shortages, inflation, and layoffs, the S&P 500 has declined by just a little over

Marek Petkovich 09:10 2025-04-29 UTC+2

What to Pay Attention to on April 29? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Tuesday, and none are significant. If we set aside all the tertiary reports, such as the GfK Consumer Confidence Index in Germany

Paolo Greco 07:00 2025-04-29 UTC+2

GBP/USD Overview – April 29: Are Labor Market and Unemployment Data Important?

On Monday, the GBP/USD currency pair also traded with low volatility and mainly moved sideways, although the British pound maintained a slight upward bias. Despite the lack of market-relevant news

Paolo Greco 04:33 2025-04-29 UTC+2

EUR/USD Overview – April 29: The Weak Yield, the Strong Resist

On Monday, the EUR/USD currency pair remained immobilized. There were no updates over the weekend from Donald Trump regarding trade developments, and no important data or events were scheduled

Paolo Greco 04:33 2025-04-29 UTC+2

The Euro Looks for a Basis for Another Upward Surge

Business activity indices in the eurozone are declining amid heightened uncertainty. The composite index in April fell from 50.9 to 50.1, nearing contraction territory. At the same time, Germany's

Kuvat Raharjo 00:54 2025-04-29 UTC+2

The Dollar Continues to Sell Off, Outlook Remains Weak

As shown by the latest CFTC report, U.S. dollar futures indicate a further deterioration in its outlook. During the reporting week, the net short position on the USD increased

Kuvat Raharjo 00:54 2025-04-29 UTC+2

Bitcoin Can't Lose

There's never a dull moment with Bitcoin. Sometimes it behaves like a risky asset, sometimes like a safe haven. At the beginning of April, the cryptocurrency was jokingly referred

Marek Petkovich 19:03 2025-04-28 UTC+2

The Market Has Outplayed the Professionals

"Follow the smart money" — this classic principle of technical analysis suggests it's safer to side with professionals rather than the crowd. However, in 2025, such an approach would have

Marek Petkovich 19:00 2025-04-28 UTC+2

USD fails to be resilient

Is the US dollar overvalued? Bank of America thinks so. The bank points out that in previous cycles, when the USD Index peaked in the mid-1980s and early 2000s

Marek Petkovich 16:23 2025-04-28 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.