NZD/USD Surges Amid US Economic Data Mix-Up
29 Sep 2023
NZD/USD rises toward 0.6050, with US Core PCE in focus.
NZD/USD advances continue after Thursday’s delivery of mixed US data.
The US Dollar may be impacted by unstable US Treasury yields.
On Friday, the US Core PCE, which is forecast to drop from 4.2% to 3.9%, is due.
NZD/USD traded higher around 0.6030 on Friday during the early European session to extend its winning run for a second day in a row. Following the announcement of mediocre economic data from the United States (US) on Thursday, the US Dollar (USD) has corrected, providing support for the NZD/USD pair’s upward movement.
As anticipated, the US Gross Domestic Product (GDP) stayed constant at 2.1%. Initial Jobless Claims increased from the previous week’s 202K to 204K for the week ending on September 22 but fell short of the anticipated 215K.
The US Dollar Index (DXY), which is currently trading below 105.90, is continuing to decline. The US dollar may be impacted by the US yields’ turbulence. The 10-year US Treasury bond’s yield is at 4.55%.
The Federal Reserve (Fed) has expressed confidence in its ability to return inflation to the target range, according to Chicago Fed President Austan Goolsbee. Goolsbee also emphasized the possibility of accomplishing this without experiencing a recession and the Fed’s dedication to controlling inflation while maintaining economic development.
On the Kiwi side, the ANZ stated that New Zealand’s September Roy Morgan Consumer Confidence reading, which was published on Friday, showed a modest decline from 85.0 in the prior reading to 86.4 in the current reading. The ANZ Business Confidence for September, however, increased on Thursday from a 3.7 decrease in August to 1.5.
In the policy meeting scheduled for next week, the Reserve Bank of New Zealand (RBNZ) is anticipated to maintain the existing monetary policy, which could put pressure on the Kiwi pair.
NZD/USD TECHNICAL ANALYSIS DAILY CHART:
NZD/USD is currently trading within an up channel.
NZD/USD is positioned above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the bullish zone, while the Stochastic oscillator suggests a positive trend.
Immediate Resistance level: 0.6045
Immediate support level: 0.5990
HOW TO TRADE NZD/USD
After falling, the NZD/USD price struck a support level and began trading in a range. NZD/USD is now trying to rise and is trading at a resistance level; if this level is broken, a further rise can be expected.
TRADE SUGGESTION- STOP BUY – 0.6060, TAKE PROFIT AT- 0.6134, SL AT- 0.6007.