empty
13.12.2024 01:29 PM
NZD/USD: New Zealand Dollar Declines Amid Multiple Pressures

This image is no longer relevant

The NZD/USD pair is declining for the fourth consecutive day, extending its weekly downtrend and dropping to the 0.5755 level, setting a new low not seen since November 2022.

This image is no longer relevant

The New Zealand dollar continues to underperform due to the Reserve Bank of New Zealand's (RBNZ) aggressive monetary easing and concerns about the recovery of the Chinese economy.

This image is no longer relevant

On the other hand, the U.S. dollar consolidates its recent gains, reaching a new monthly high and exerting additional downward pressure on the NZD/USD pair.

This image is no longer relevant

Key Drivers:

  1. U.S. Inflation Data: This week's CPI (Consumer Price Index) and PPI (Producer Price Index) reports revealed that progress toward the Federal Reserve's 2% inflation target has effectively stalled. Combined with expectations that expansionary policies under President Trump could drive inflation higher, this suggests that the Federal Reserve might adopt a more cautious stance on rate cuts in the future.
  2. U.S. Treasury Yields: Expectations for a less dovish Fed policy continue to support further increases in U.S. Treasury yields, acting as a tailwind for the U.S. dollar.
  3. Geopolitical Risks: Ongoing geopolitical tensions, including the prolonged Russia-Ukraine conflict, Middle East instability, and renewed fears of a trade war with China, further bolster the U.S. dollar as a safe-haven currency. These developments contribute to capital outflows from the risk-sensitive New Zealand dollar.
  4. RBNZ Policy and China Concerns: The RBNZ's dovish stance and uncertainties surrounding the recovery of the Chinese economy add to the bearish sentiment for the kiwi.

Market Outlook:

On Friday, there are no major U.S. economic data releases expected to drive market movements, leaving the NZD/USD pair under the influence of USD price dynamics. However, the aforementioned fundamental backdrop suggests that the path of least resistance for spot prices remains downward.

Traders are likely to remain cautious ahead of the FOMC's critical monetary policy meeting next week. Oscillators on the daily chart are also nearing oversold territory, indicating that a further sharp decline may be limited in the near term.

Key Levels to Watch:

  • Support: The 0.5750 level serves as immediate support, with potential for a deeper move toward lower levels if breached.
  • Resistance: Any rebound would face resistance around the 0.5800 and 0.5850 levels.
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

USD/JPY. Analysis and Forecast

The Japanese yen continues to strengthen, remaining near its highest levels of 2024. This is driven by growing demand for traditional safe-haven assets amid a weakening U.S. dollar caused

Irina Yanina 12:31 2025-04-14 UTC+2

The Uncertainty Factor Will Pressure the Dollar and Support Demand for Safe-Haven Assets (There is a likelihood of further decline in USD/JPY and rising gold prices)

Global markets remain heavily influenced by Donald Trump's erratic behavior. In his attempt to pull the U.S. out of severe economic dependence on imports, Trump continues to juggle the topic

Pati Gani 09:45 2025-04-14 UTC+2

The Market Wants to, But Hesitates

Do you have a plan, Mr. Donald Trump? Some believe what's happening is masterful diplomacy — they hope that once serious proposals from other countries reach the White House, tariffs

Marek Petkovich 09:45 2025-04-14 UTC+2

What to Pay Attention to on April 14? A Breakdown of Fundamental Events for Beginners

No macroeconomic events are scheduled for Monday. However, the macroeconomic background is not of much interest to traders at the moment. At the very least, it does not drive

Paolo Greco 06:08 2025-04-14 UTC+2

EUR/USD Weekly Preview: The Show Must Go On

Last week, EUR/USD posted its strongest rally of the year, climbing from 1.0882 to a weekly high of 1.1474. A corrective pullback or consolidation phase typically follows such an impulsive

Irina Manzenko 05:37 2025-04-14 UTC+2

GBP/USD Overview. April 14: The British Pound Remains a Hostage of the Dollar

The GBP/USD currency pair also traded higher on Friday. However, it's worth noting that the British currency—once praised for its remarkable resilience against the dollar in recent years—is now rising

Paolo Greco 03:37 2025-04-14 UTC+2

EUR/USD Overview. April 14: The Dollar—From Leader to Laggard

The EUR/USD currency pair continued its steady rally on Friday. At this point, there are no more questions about what is happening in the currency market—it's as simple

Paolo Greco 03:37 2025-04-14 UTC+2

The US Dollar: Weekly Preview

There will be a few significant events in the upcoming week. Of course, reports such as industrial production, retail sales, and new home sales should be noted. At first glance

Chin Zhao 00:59 2025-04-14 UTC+2

The ECB May Cut Interest Rates Twice

The euro is showing a sharp rally against the U.S. dollar. The EUR/USD pair has already reached a three-year high and shows no signs of slowing down. Meanwhile, according

Jakub Novak 12:42 2025-04-11 UTC+2

AUD/USD. Analysis and Forecast

The AUD/USD pair is attempting to attract buyers in its rebound from the psychological level of 0.5900, marking its lowest point since March 2020. The upward momentum has managed

Irina Yanina 12:39 2025-04-11 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.