Market news
25.07.2023, 16:12

NZD/USD rises despite solid US data

  • The NZD/USD rose above 0.6200 despite the USD holding its foot. 
  • The US reported better-than-expected Confidence and Housing data ahead of the FOMC decision.
  • China’s support package policies announcements boosted the NZD.

On Tuesday, the NZD/USD escalated higher despite the USD trading resilient against most of its partners. Ahead of Wednesday's Federal Reserve (Fed) decision, the US reported robust data which could limit the pair’s upside. On the Kiwi’s side, the NZD seem to be strengthening on the Chinese announcement of an economic support package that would benefit the Asian block.

Investors assess Confidence and Housing data ahead of FOMC decision

The US reported solid Housing and Consumer Confidence data from July. The Conference Board reported that individuals' confidence in economic activity jumped to 117, above the expected 112 and the previous 109.7. On the other hand, the S&P/Case-Shiller Home Price Index dropped but was lower than expected in May, coming falling by 1.7% vs -2.2% expected, while the Federal Housing Agency reported that its Housing Price Index increased by 0.7% in the same month, beating the consensus of 0.2%.

Ahead of the Federal Reserve (Fed) two-day meeting, markets await a 25 basis point (bps) hike and data-dependant approach by Chair Powell, as a robust economy and a tight labour market may make the Federal Open Market Committee consider another hike in September. 

In the meantime, the USD DXY Index continued to rise to 101.60 but then retreated towards 101.40, still holding gains while US Treasury yields traded mixed, with the 2-year rate slightly decreased to 4.90%.


NZD/USD Levels to watch

The outlook is tilted to the downside despite the pair tallying a two-day winning strike, according to the daily chart. The Relative Strength Index (RSI) stands below its midline while the Moving Average Convergence (MACD) prints rising red bars. However, if the bulls manage to hold above the 20 and 100-day Simple Moving Average (SMA) convergence above 0.6200, more upside may be on the horizon.

Resistance levels: 0.6230, 0.6250, 0.6270.
Support levels: 0.6200, 0.6190 (100-day SMA), 0.6150.

 

NZD/USD Daily chart

 

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location