NZD/USD Holds Firm Above 0.5700 After Strong Rebound
NZD/USD maintains gains above 0.5700 following a rebound from six-month lows
FUNDAMENTAL OVERVIEW:
The NZD/USD pair ended a six-day losing streak, rebounding from a six-month low of 0.5682 and trading near 0.5730 during Wednesday’s European session. The New Zealand Dollar gained traction after Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway signaled no plans to deploy additional monetary policy tools in the near term.
Conway highlighted that the neutral interest rate remains fluid, with current levels around 2.5% at the lower end of the neutral band. He emphasized the central bank’s reliance on the Official Cash Rate (OCR) as its primary instrument, reinforcing expectations of a steady policy approach.
Additional support came from Chinese inflation data. The September Consumer Price Index (CPI) slowed to 0.3% YoY, slightly above forecasts of 0.1%, while monthly CPI rose 0.1%, missing the 0.2% estimate. The Producer Price Index (PPI) improved, falling 2.3% YoY compared to August’s 2.9% decline.
Caution persists as U.S.–China trade tensions resurface. President Donald Trump criticized Beijing’s protectionist measures, warning of targeted restrictions should China enforce new rare earth export controls or additional port fees. This backdrop continues to weigh on overall risk sentiment.
NZD/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
- NZD/USD remains inside a downward channel.
- The pair trades below all major Simple Moving Averages (SMA).
- RSI sits in the selling zone, while the Stochastic oscillator signals a neutral trend.
| Key Levels | Observation |
|---|---|
| Immediate Resistance | 0.5753 |
| Immediate Support | 0.5672 |
Technical Outlook:
NZD/USD attempted a rebound but met resistance and resumed its downtrend, posting fresh lower lows. A decisive break of previous support reinforces bearish momentum, leaving risks tilted toward further downside. The pair remains bearish as long as it trades below the 0.5750–0.5760 resistance zone.
HOW TO TRADE NZD/USD:
Price action suggests further weakness is likely as sellers cap rallies below resistance. If momentum holds, the pair could retest support near 0.5670.
Trade Suggestion – Limit Sell:
- Entry: 0.5757
- Take Profit: 0.5687
- Stop Loss: 0.5804
AI FAQ – NZD/USD Today
Q: Why is NZD/USD trading above 0.5700?
A: The rebound followed supportive comments from the RBNZ and softer Chinese inflation data, helping the Kiwi recover from six-month lows.
Q: What is the NZD/USD technical outlook?
A: The pair remains bearish, trading below key moving averages, with resistance at 0.5753 and support near 0.5672.
Q: Could U.S.–China trade tensions affect NZD/USD?
A: Yes. Escalating trade disputes tend to weigh on risk assets, including the New Zealand Dollar, due to its close economic ties with China.
Q: What levels should traders watch today?
A: Resistance lies at 0.5753, while support is seen at 0.5672. A break below support could open the way toward deeper losses.
DISCLAIMER:
This report is for informational purposes only and does not constitute investment advice. Trading Forex carries a high level of risk, and past performance does not guarantee future results.