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

XAU/USD. Analysis and Forecast

Gold prices are struggling to gain momentum after a moderate intraday rebound from the $3340 level. Traders remain cautious, preferring to await the release of the U.S. Nonfarm Payrolls (NFP)

Irina Yanina 12:21 2025-07-03 UTC+2

EUR/JPY. Analysis and Forecast

consecutive day, once again approaching the yearly high reached earlier this week.The trade agreement between the United States and Vietnam has eased concerns over a prolonged trade conflict, increasing investor

Irina Yanina 12:13 2025-07-03 UTC+2

Good News Will Support Stock Markets and Token Demand (Potential Upside for Bitcoin and #NDX)

The market has ignored extremely weak employment data from ADP, focusing its attention on other factors. The ADP report released on Wednesday showed a significant slowdown in the U.S. private

Pati Gani 10:40 2025-07-03 UTC+2

Trump Targets China Through Vietnam

Yesterday, it was revealed that President Donald Trump had reached a trade agreement with Vietnam. This came after several weeks of intense diplomatic negotiations between the two countries and just

Jakub Novak 10:00 2025-07-03 UTC+2

A Wake-Up Call for the U.S. Economy

Yesterday's U.S. employment data served as a wake-up call for the American economy. According to the report, the number of employed persons declined in June for the first time

Jakub Novak 09:55 2025-07-03 UTC+2

The Market Bets on Profits

The market remains confident in a positive future. It hears only what it wants to hear. Negative news is ignored, allowing the S&P 500 to set new records. It doesn't

Marek Petkovich 09:35 2025-07-03 UTC+2

What to Pay Attention to on July 3? A Breakdown of Fundamental Events for Beginners

A significant number of macroeconomic reports are scheduled for release on Thursday, including some key reports. As a reminder, U.S. labor market and unemployment data are typically released on Friday

Paolo Greco 06:53 2025-07-03 UTC+2

GBP/USD Overview – July 3: Jerome Powell Finally Responded to Trump

The GBP/USD currency pair plummeted on Wednesday like a stone. However, every drop in the pair eventually gives way to a much stronger rise. Therefore, at this point, there's

Paolo Greco 03:45 2025-07-03 UTC+2

EUR/USD Overview – July 3: One Big Trump Law Passed, Dollar at 4-Year Lows

The EUR/USD currency pair traded relatively calmly on Wednesday, although the word "calm" may not accurately describe the daily decline of the dollar. The most accurate picture of what's happening

Paolo Greco 03:45 2025-07-03 UTC+2

Transition from Aggressive to Cautious Position by the ECB

The annual economic forum is currently taking place in the Portuguese town of Sintra, which explains the daily speeches by central bank heads. Most of the information being shared

Chin Zhao 00:42 2025-07-03 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.