empty
17.12.2024 03:15 PM
NZD/USD: Analysis and Forecast – Pair Under Pressure from Multiple Factors

This image is no longer relevant

The NZD/USD pair remains under pressure from several key factors.

This image is no longer relevant

Today, the pair attracts new sellers, continuing its steady intraday decline. Spot prices have dropped to 0.5755 and remain near the lowest level since October 2022, reached on Monday.

Key Factors Driving the Decline:

  1. Dovish RBNZ:The New Zealand dollar continues to weaken due to the dovish stance of the Reserve Bank of New Zealand (RBNZ) and expectations of more aggressive policy easing by the central bank.
  2. China's Economic Concerns:Worries over China's economic recovery and escalating fears of a US-China trade war are additional factors undermining Antipodean currencies, including the NZD.
  3. US Dollar Strength:Simultaneous US dollar buying further pressures the NZD/USD pair lower. Signs that progress toward achieving the 2% inflation target in the United States has stalled have convinced investors that the Federal Reserve will slow the pace of rate cuts next year.
    • Expectations that Donald Trump's policies (if re-elected) could lead to higher inflation and government borrowing continue to support elevated US Treasury yields.
    • Alongside this, geopolitical risks arising from the escalating Russia-Ukraine conflict and tensions in the Middle East bolster the safe-haven US dollar.

Focus on Key Events:

  • US Retail Sales Data:Traders should watch the release of monthly retail sales data from the United States for short-term opportunities.
  • FOMC Meeting:However, the main focus remains on the outcome of the crucial two-day FOMC meeting on Wednesday. Investors will closely analyze the accompanying policy statement and Fed Chair Jerome Powell's speech for clues regarding the future path of interest rate cuts. His comments will influence the short-term USD price dynamics, adding new directional momentum to the NZD/USD pair.

Technical Outlook

From a technical perspective:

  • Oscillators on the daily chart remain deeply in negative territory and far from oversold conditions.
  • This indicates that the path of least resistance for the pair remains to the downside.

In conclusion, while short-term movements may be influenced by upcoming US data and the FOMC outcome, broader fundamentals and technical indicators continue to suggest a bearish outlook for NZD/USD.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

What to Watch on July 9th: Fundamental Events Breakdown for Beginners

There are no macroeconomic publications scheduled for Wednesday. The week began fairly actively, with both currency pairs declining, even though the fundamental backdrop rather points to another decline

Paolo Greco 08:57 2025-07-09 UTC+2

GBP/USD Overview on July 9, 2025

The GBP/USD pair continued its downward movement on Tuesday, which continues to puzzle observers. As we've repeatedly noted, no instrument in any market can move in the same direction indefinitely

Paolo Greco 08:18 2025-07-09 UTC+2

EUR/USD Overview on July 9, 2025

The EUR/USD currency pair maintained a corrective tone throughout Tuesday. There were no macroeconomic events that day, but Donald Trump "listed" all the countries for which tariffs will be raised

Paolo Greco 07:47 2025-07-09 UTC+2

XAU/USD. Analysis and Forecast

Today, gold remains under pressure; however, several factors are limiting further decline. Expectations that the tariffs imposed by U.S. President Donald Trump will support inflation in the United States

Irina Yanina 19:23 2025-07-08 UTC+2

USD/CHF. Analysis and Forecast

On Tuesday, the USD/CHF pair is under selling pressure, pulling back from the weekly high near the key psychological level of 0.8000. This decline is driven by a combination

Irina Yanina 12:47 2025-07-08 UTC+2

What to Watch on July 8th? Fundamental Events Overview for Beginners

No macroeconomic publications are scheduled for Tuesday. However, it cannot be said that the market was idle on Monday despite the lack of key macroeconomic events—there was still enough news

Paolo Greco 11:19 2025-07-08 UTC+2

Markets given breathing room as tariff deadline pushed to August

No need to panic. The market is simply cautious about the White House's return to the tariffs announced on America's Liberation Day. Donald Trump sent letters to various countries specifying

Marek Petkovich 10:14 2025-07-08 UTC+2

GBP/USD Pair Overview on July 8, 2025

The GBP/USD pair declined slightly on Monday, but it's still premature to speak of a downtrend. From a technical standpoint, the pair remains below the moving average line; however

Paolo Greco 08:55 2025-07-08 UTC+2

EUR/USD Review on July 8, 2025

The EUR/USD currency pair traded with a downward bias throughout Monday, although there were likely no solid reasons for the dollar to strengthen again. Let's recall that over the weekend

Paolo Greco 08:37 2025-07-08 UTC+2

GBP/JPY. Analysis and Forecast

During the European session on Monday, the GBP/JPY currency pair is approaching the 198.30 level. The pair finds some support from UK housing data: in June, house prices rose

Irina Yanina 19:40 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.