The NZD/USD is trading near the 0.57100 ratio as of this writing. The NZD/USD was trading near a high around the 0.57700 mark early this Monday, but near-term and monthly highs seen late last week and early yesterday have eroded. While Retail Sales data from New Zealand was better than anticipated early on Monday, it appears risk adverse sentiment via stronger USD centric buying has pumped the breaks on upwards movement for the NZD/USD for the moment.
While a Business Confidence survey will come from New Zealand early on Thursday, financial institutions will also still be keeping a nervous eye on U.S Wall Street results. Losses the last four trading days on major U.S indices are impacting risk appetite and this has created choppy conditions in Forex and the NZD/USD is not immune to shifts in sentiment.
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NZD/USD Support Levels in Sight
The technical acknowledgement that the NZD/USD is trading near key support is important. The 0.571000 to 0.57000 ratios should be watched closely in the coming hours as a barometer. The NZD/USD has been able to gain since touching lows of nearly 0.56200 in the second week of February, but if support levels falter short-term this could spark some more nervousness.
Existing behavioral sentiment will be generated via U.S markets, while some traders uninterested in ‘outside’ influences for the NZD/USD may believe this is wrong, the notion that Forex is reacting to stock market nervousness is not incorrect. Tomorrow’s ANZ Business Confidence reading will be important early tomorrow in the NZD/USD, but the currency pair may also be reacting to earnings data via Nvidia.
NZD/USD Choppy Waters and Speculative Outlook
Traders should also note that the U.S will issue Gross Domestic Product numbers tomorrow. However, while it may sound rather contradictory to say U.S economic statistics are less important, the result may not shake the NZD/USD unless there is a major surprise.
- Generating a large amount of the fragile conditions on Wall Street and in global Forex is the fact that the U.S White House continues to cause reactions in markets.
- Trading institutions are starting to become accustomed to the Trump administration dynamics, but the speed of news developments is still causing choppiness.
- The NZD/USD may appear oversold to many traders and its speculative mid-term outlook is likely more optimistic, but short-term traders need to remain cautious and bet carefully.
- Looking for upside momentum in the NZD/USD may feel correct near perceived technical support, but the question is if the support can be durable under present conditions.
NZD/USD Short Term Outlook:
Current Resistance: 0.57160
Current Support: 0.57090
High Target: 0.57450
Low Target: 0.57010
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