New Zealand Dollar drops amid a firmer US Dollar
NZD/USD trades lower near the 0.5900 level at the time of writing, with no New Zealand catalyst behind the move. The US Dollar Index (DXY) is up 0.26% near the 100.00 level, and the Kiwi is simply on the wrong side of it.
The New Zealand Dollar (NZD) experienced a decline against the US Dollar (USD), settling near the 0.5900 level as of the latest update. This downward shift in the currency pair lacks a specific catalyst from New Zealand, with the US Dollar Index (DXY) having risen by 0.26% towards the 100.00 mark. Oil prices have increased by 3% to $77.30 per barrel following reports that vessels from the United States, Israel, and other nations viewed as hostile by Tehran would be prohibited from traversing the Strait of Hormuz under the proposed deal.
However, the performance of Gold, which dropped by 0.09%, and Silver, which decreased by 0.84%, also played a role in this fluctuation.
China's economic data emerged as a more pressing concern, with the nation reporting a year-on-year export growth of 22.2% in the July period, a decline from 27%, coupled with a slowing import growth rate of 27.9% compared to 36%. The trade surplus narrowed to $107 billion from $125.62 billion. Although these figures remain robust, the slowdown in New Zealand's largest export market appears to have a more significant impact on the NZD than any domestic announcements this week.
The USD Nonfarm Payrolls data, scheduled for release on Friday, is expected to show an addition of 80,000 jobs, following June's 57,000 increase and the average hourly earnings growth of 0.3% in the preceding month. A strong wage print could reinforce the Greenback's recovery, squeezing the NZD from both sides. On the 4-hour chart, NZD/USD is currently trading at 0.5869, with the immediate trend limited as the pair is under the 20-period Simple Moving Average (SMA) at 0.5876 and above the 100-period SMA at 0.5835.
The horizontal band of levels just above, ranging from 0.5872 to 0.5882, further supports this immediate supply zone, hindering upside attempts, while the Relative Strength Index (RSI) around 51 indicates neutral-to-firm momentum that has not yet manifested into a clear bullish breakout.
On the opposite side, the key resistance levels are positioned at 0.5872, 0.5876, and 0.5882, with more substantial barriers located at 0.5907 and 0.5930, before reaching 0.5965. Conversely, the primary support levels are found at 0.5860, below the 100-period SMA at 0.5835, which acts as a deeper structural support for any downward correction.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
