NZD/USD Holds Near 0.5950 Ahead of US Jobs Revision.
NZD/USD holds steady around 0.5950 ahead of the US NFP Benchmark Revision.
FUNDAMENTAL OVERVIEW:
NZD/USD extends its third consecutive session of gains, trading around 0.5950 in Tuesday’s Asian hours. The pair benefits from a weaker US Dollar (USD) after softer-than-expected August jobs data heightened expectations of a potential 50-basis-point rate cut by the Federal Reserve (Fed) in September.
The CME FedWatch tool shows markets pricing in an 88% probability of a 25-bps cut and nearly 12% odds of a 50-bps reduction at the upcoming Fed meeting. Traders also await the US Nonfarm Payrolls Benchmark Revision later today. Notably, the August 2024 preliminary benchmark revisions showed 818,000 new jobs added, fewer than initially reported for the year through March 2024, prompting a 50-bps Fed rate cut that lowered the funds rate to 5% from 5.5%.
Market attention will turn to key US inflation data this week. The August Producer Price Index (PPI) is expected to rise 3.3% YoY for the headline and 3.5% for the core, with the Consumer Price Index (CPI) due Thursday likely to influence Fed policy outlook.
On the downside, NZD/USD could face pressure as the Reserve Bank of New Zealand (RBNZ) may implement another rate cut in October, following August’s 25-bps reduction, amid slower Q2 consumer spending and heightened growth risks.
NZD/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
NZD/USD is trading within an up channel.
NZD/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Overbought Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 0.5985
Immediate support level: 0.5907
HOW TO TRADE NZD/USD
On a higher time frame, NZD/USD stabilized after a prior decline and reversed sharply upward, breaking a key resistance zone with strong bullish momentum. Currently, on a smaller time frame, the pair is facing rejection after breaking the key barrier and moving toward a support zone. If this support holds, NZD/USD could resume its upward trajectory.
