The NZD/USD has resided within a narrow range the past few days of trading, and is near the 0.57525 ratio, this after being able to attain highs around the 0.58300 level last week until reversing lower.
The NZD/USD is near the 0.57525 mark as of this writing. Depending on timeframes the current value of the NZD/USD can be seen as a success, failure or just another day within Forex reality. The NZD/USD did climb to a highs around the 0.58300 level last week, but the currency pair’s healthy correlation to the broad Forex market then produced a downwards march.
However, taking into perspective one month considerations the NZD/USD is certainly above lows produced in late February when the 0.55860 ratio was being wagered upon. The broad Forex market has done relatively well against the USD over the past handful of weeks, but recent price action including the NZD/USD has seen caution reemerge as financial institutions reflect on their mid-term outlooks.
Lack of Clarity as Tariffs Shadow Sentiment
The U.S will issue Core Durable Goods Orders statistics today and this outcome should be monitored by NZD/USD traders. However, the results of the economic data may not impact behavioral sentiment too much. Yet, the numbers are important because they are a leading indicator regarding insights of manufacturers who must place orders for materials in order to produce goods for consumers. The report is a monthly outcome, thus it may offer insights into the forward thinking of important players in the U.S economy regarding White House policy.
Talk of tariffs remains a focal point for financial institutions, and President Trump’s 2nd of April rhetoric and actions are expected to collide once again next week. Meaning the NZD/USD may continue to produce a rather cautious price realm until clarity creates the ability for financial institutions to be more aggressive regarding their commercial trading of forward Forex positions.
The 0.57000 Support Level and Resistance Around 0.58000
Since the end of the first week in March the 0.57000 to 0.58000 price realm in the NZD/USD has become more important. Clearly financial institutions are creating a zone of comfort in which they can engage until they believe they can act upon their beliefs.
- Optimists who believe the NZD/USD is still within oversold territory should remain cautious and not get overly ambitious regarding their targets in the near-term.
- However, the fact that support levels have held for the most part and continue to produce a rather solid lower realm for the NZD/USD does suggest financial institutions believe upside potential lurks.
- If the 0.57450 short-term support level proves durable today, this may indicate that traders will continue to wager on buying positions which flirt with the 0.57600 region.
NZD/USD Short Term Outlook:
Current Resistance: 0.57575
Current Support: 0.57475
High Target: 0.57660
Low Target: 0.57390
Ready to trade our daily Forex analysis? Here’s a list of the brokers for forex trading in New Zealand to choose from.