- NZD / USD is consolidated almost 0.6000 after hitting a six -month top.
- Fed leaves the rates unchanged but underlines the increase in the risks of inflation and unemployment.
- The technical indicators have a mixed perspective, with a key support at 0.5920 and resistance at 0.5950.
The NZD / USD pair withdraws from a six-month summit almost 0.6025 reached on Wednesday earlier, negotiating approximately 0.6000 while investors react to the prudent tone of the Federal Reserve (Fed) and the mixed economic data of New Zealand. The FED maintained its unchanged policy rate at 4.25% to 4.50% in accordance with market expectations, but recognized the increase in the risks of inflation and unemployment, adding a layer of uncertainty to the market.
The Fed policy declaration has reaffirmed its approach dependent on data, stressing that inflation remains “somewhat high” and that the risks for unemployment and inflation have increased. This cautious tone, combined with the reduction in the current balance sheet, supported the US dollar (USD), exerting pressure on the New Zealand dollar (NZD). The US dollar index (DXY) remains stable nearly 99.50, reflecting the prudent feeling of the market before the President of the Fed President Jerome Powell.
Meanwhile, New Zealand labor market data added to Kiwi's difficulties. The unemployment rate remained unchanged at 5.1%, surprising markets awaiting a slight increase to 5.3%. However, the labor costs index has increased at a slower than expected rate, strengthening expectations for additional relaxation by the Bank of New Zealand (RBNZ). The RBNZ is likely to maintain a dominant position, with pricing markets in additional rate reductions in the coming months.
Technical analysis
Technically, the NZD / USD faces an initial resistance at 0.5943, followed by 0.5948 and 0.5952. Leaving, the support is observed at 0.5930, 0.5915 and 0.5886. The RSI is neutral at 55.28, while the MacD shows a downward divergence, suggesting a potential correction. However, the longer -term mobile averages, including the SMA at 100 days (0.5728) and the 200 -day SMA (0.5886), report a more optimistic perspective, keeping the broader trend intact.
In summary, NZD / USD's prospects remain mixed as the pair consolidates recent gains, with the feeling of the market likely to depend on the advice of the Fed and more clarity on the economic path of New Zealand.
Daily graphic
