Forex analytics and overview

NZD/USD Under Pressure, Correction Could Extend Further

2024.09.12 09:08

is attempting to recover from yesterday’s decline on Thursday and is heading towards 0.6148. The pair came under downward pressure on 29 August, and since then its attempts to stabilize have not brought any tangible result. The ambiguous US release has increased bets that the Federal Reserve will ease monetary policy very cautiously next week. This means a 25-basis-point interest rate cut.
 
The Reserve Bank of New Zealand has already started its easing cycle, with a launch in August. At that time, the RBNZ cut interest rates by 25 basis points, marking the first reduction in four years. The RBNZ is expected to lower borrowing costs at each of the two meetings scheduled for this year, with a 50-basis-point rate cut possible at one of these meetings.
 
The consensus forecast suggests that the cash rate will be 3.00% by the end of 2025, down from 5.25% now. As for the latest statistics, annual food inflation in New Zealand eased to 0.4% in August from the previous 0.6%. This is a good signal, enabling the RBNZ to maintain its global easing stance.

Technical analysis of NZD/USD

The NZD/USD H4 chart shows that the market has completed a downward wave, reaching 0.6106. A corrective structure is forming today, aiming for 0.6150 (testing from below). The correction could extend to 0.6166. Subsequently, the price might decline to 0.6070, potentially continuing the trend towards the local target of 0.6050. This scenario is technically supported by the MACD indicator, whose signal line is below zero and pointing strictly downwards.
 NZD/USD Analysis

The NZD/USD H1 chart shows that the market has formed a consolidation range around 0.6140 and extended it down to 0.6106. Today, the market is correcting the downward wave, with the target for a correction of at least 0.6157. Once the correction is complete, the downward wave could develop towards 0.6069. This scenario is also technically supported by the Stochastic oscillator, whose signal line is below 50 and pointing strictly towards 80. Subsequently, a decline to 20 is expected.
NZD/USD Analysis

By RoboForex Analytical Department

Disclaimer
: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 96,256.79 1.51%
ethereum
Ethereum (ETH) $ 3,324.33 4.63%
tether
Tether (USDT) $ 0.99936 0.06%
xrp
XRP (XRP) $ 2.20 5.08%
bnb
BNB (BNB) $ 654.25 4.83%
solana
Solana (SOL) $ 180.24 8.55%
dogecoin
Dogecoin (DOGE) $ 0.309784 7.83%
usd-coin
USDC (USDC) $ 1.00 0.00%
staked-ether
Lido Staked Ether (STETH) $ 3,316.73 4.73%
cardano
Cardano (ADA) $ 0.881415 8.17%
tron
TRON (TRX) $ 0.242699 3.10%
avalanche-2
Avalanche (AVAX) $ 36.81 9.25%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,933.76 4.64%
chainlink
Chainlink (LINK) $ 21.89 7.87%
the-open-network
Toncoin (TON) $ 5.26 5.30%
sui
Sui (SUI) $ 4.38 8.61%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,980.72 1.30%
shiba-inu
Shiba Inu (SHIB) $ 0.000021 8.57%
hyperliquid
Hyperliquid (HYPE) $ 33.17 0.42%
stellar
Stellar (XLM) $ 0.349151 7.71%
polkadot
Polkadot (DOT) $ 6.88 7.43%
hedera-hashgraph
Hedera (HBAR) $ 0.248115 8.92%
weth
WETH (WETH) $ 3,319.17 4.63%
bitcoin-cash
Bitcoin Cash (BCH) $ 447.38 2.89%
leo-token
LEO Token (LEO) $ 9.33 1.04%
uniswap
Uniswap (UNI) $ 13.51 5.56%
litecoin
Litecoin (LTC) $ 98.29 5.35%
pepe
Pepe (PEPE) $ 0.000017 8.15%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,500.72 4.87%
near
NEAR Protocol (NEAR) $ 4.90 10.42%
ethena-usde
Ethena USDe (USDE) $ 0.999409 0.06%
bitget-token
Bitget Token (BGB) $ 4.12 11.15%
usds
USDS (USDS) $ 0.995037 0.51%
aptos
Aptos (APT) $ 9.25 12.64%
internet-computer
Internet Computer (ICP) $ 9.87 8.67%
aave
Aave (AAVE) $ 295.16 12.11%
crypto-com-chain
Cronos (CRO) $ 0.154219 6.39%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.468727 7.45%
ethereum-classic
Ethereum Classic (ETC) $ 25.68 7.46%
mantle
Mantle (MNT) $ 1.14 12.64%
vechain
VeChain (VET) $ 0.044644 8.23%
render-token
Render (RENDER) $ 6.94 9.77%
whitebit
WhiteBIT Coin (WBT) $ 24.29 0.85%
monero
Monero (XMR) $ 189.44 1.26%
dai
Dai (DAI) $ 1.00 0.05%
mantra-dao
MANTRA (OM) $ 3.55 8.03%
bittensor
Bittensor (TAO) $ 447.62 9.37%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.25 9.97%
arbitrum
Arbitrum (ARB) $ 0.738266 9.18%
filecoin
Filecoin (FIL) $ 4.84 8.30%