NZD/USD Price Forecast: Upside attempts likely to be tested at 0.5800
- NZD/USD bounces to 0.5740 after finding support around 0.5700.
- Lower Oil prices are supporting the pair, although Fed-RBNZ rate hike divergence is likely to weigh on the pair.
- The current recovery seems corrective, with 0.5800 likely to cap rallies.
The New Zealand Dollar (NZD) shows a modest recovery against the US Dollar (USD) on Thursday, favoured by somewhat brighter market sentiment as Brent Oil prices remain below the $100 level, which provides some relief to Oil-importing economies like New Zealand’s. The NZD/USD pair trades at 0.5740 after bouncing from the 0.5700 area earlier on the day, but remains below a key resistance area just above 0.5800.
Kiwi’s recovery, however, seems corrective. Federal Reserve's (Fed) hawkish turn last week has boosted hopes of higher interest rates in the US. This is likely to widen the interest rate differential with the Reserve Bank of New Zealand, as investors are dialing back hopes of immediate rate hikes, amid signs of weakening economic growth and a loosening labour market.
Technical Analysis: The immediate rebound seems corrective
From a technical perspective, the NZD/USD is correcting higher from the 78.6% Fibonacci retracement ot the July-August rally, with price action contained within previous ranges and upside attempts so far lacking conviction to turn into a trend shift. Momentum indicators remain negative, with the Relative Strength Index (RSI) near 36 just above oversold conditions, and the Moving Average Convergence Divergence (MACD) below zero hinting at persistent downside pressure.
Upside attempts are likely to find significant resistance at the 0.5810-0.5825 area, the August 13 and September 2 lows, but also the neckline of a bearish Head & Shoulders (H&S) pattern. Further up, the key 200-day Simple Moving Average SMA lies at 0.5853.
On the downside, immediate support emerges at the mentioned 78.6% retracement at 0.5705. Below here, the late June low in the 0.5630 area is coincident with the H&S's measured target.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | -0.01% | 0.24% | -0.05% | 0.08% | -0.35% | -0.05% | |
| EUR | -0.02% | -0.03% | 0.24% | -0.05% | 0.06% | -0.35% | -0.05% | |
| GBP | 0.01% | 0.03% | 0.23% | -0.05% | 0.08% | -0.34% | -0.02% | |
| JPY | -0.24% | -0.24% | -0.23% | -0.27% | -0.14% | -0.59% | -0.25% | |
| CAD | 0.05% | 0.05% | 0.05% | 0.27% | 0.13% | -0.30% | 0.02% | |
| AUD | -0.08% | -0.06% | -0.08% | 0.14% | -0.13% | -0.43% | -0.10% | |
| NZD | 0.35% | 0.35% | 0.34% | 0.59% | 0.30% | 0.43% | 0.33% | |
| CHF | 0.05% | 0.05% | 0.02% | 0.25% | -0.02% | 0.10% | -0.33% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
Translation information This content was machine-translated from English using the DeepL API. While the tool is highly advanced, the text may deviate from perfect linguistic fluency.