NZD/USD Price Forecast: Looking for direction with YTD low at 0.5567 in sight
The New Zealand Dollar (NZD) is giving back previous gains against the US Dollar (USD) on Thursday, turning negative on the daily chart, and leaving the immediate bearish trend intact after dropping nearly 1% on Wednesday.
New Zealand Dollar (NZD) is experiencing a downturn against the US Dollar (USD) as of Thursday, trading at 0.5615, marking a decline of nearly 1% from the previous day. The NZD/USD pair was capped around 0.5635 during the Asian trading session, following a drop to 0.5584 lows. This decline was due to the Reserve Bank of New Zealand (RBNZ) leaving interest rates unchanged, despite investors expecting a 25-basis-points hike, and the US Federal Reserve (Fed) also maintaining rates.
Fed Governor Kevin Warsh hinted at further monetary tightening, signaling a potential lower terminal interest rate than expected. Technical indicators, such as the Relative Strength Index (14) and Moving Average Convergence Divergence (MACD), suggest ongoing downside pressure. The immediate support level is at 0.5635, with resistance near 0.5700.
Further down, the 18-month low at 0.5567 may be tested, with the 127.2% Fibonacci retracement of the June-August rally near 0.5530 being a potential target.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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