NZD/USD Price Forecast: Bears remain in control with 0.5800 support eyed
- NZD/USD picks up to 0.5850 but maintains its near-term bearish trend intact.
- High Oil prices and rising global bonds are keeping risk appetite subdued.
- The US Dollar remains on its back foot, which is keeping the NZD from depreciating further.
The New Zealand Dollar (NZD) nudges higher against a depressed US Dollar (USD) on Thursday, but keeps its near-term bearish trend intact as high Oil prices and surging global yields keep market sentiment subdued. The NZD/USD pair trades near session highs above 0.5850 at the time of writing, but remains within Wednesday’s range with key support in the 0.5800 area eyed.
Investors are wary of risk on Thursday, with Brent Oil prices a few cents below the $100 level after the US and Iran traded attacks on tankers earlier this week, in the strongest escalation of hostilities in months. Brent prices at these levels add pressure on New Zealand’s Oil-importing economy, and are likely to keep Kiwi Dollar rallies limited.
The US Dollar, on the other hand, is struggling amid a mix of factors, namely investors’ disappointment about the US Treasury’s bond buyback program, which is expected to start on Monday. This has eroded the traditional US Dollar’s safe-haven status and is keeping the NZD from dropping further.
Technical Analysis: A bearish H&S is in progress
NZD/USD is struggling to return above the 200-day simple moving average (SMA) at 0.5855, keeping a bearish near-term tone with price action nearing the neckline of a bearish Head & Shoulders formation, between 0.5820 and 0.5800. Momentum indicators in the daily chart remain within bearish territory, with the Relative Strength Index (RSI) around 44, and the Moving Average Convergence Divergence (MACD) below zero.
Bulls should break the mentioned 200-day SMA to shift the focus towards the September 4 high in the area of 0.5900, ahead of the late August highs near 0.6000.
On the downside, a clear break below the September 2 low at 0.5802 would activate an H&S pattern with the next support areas at 0.5765 and 0.5740, and the figure's measured target just below the year-to-date lows, at 0.5626.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.05% | -0.09% | 0.03% | 0.04% | -0.18% | -0.11% | |
| EUR | 0.05% | 0.00% | -0.02% | 0.07% | 0.10% | -0.13% | -0.05% | |
| GBP | 0.05% | -0.00% | -0.02% | 0.07% | 0.09% | -0.14% | -0.05% | |
| JPY | 0.09% | 0.02% | 0.02% | 0.09% | 0.12% | -0.14% | -0.03% | |
| CAD | -0.03% | -0.07% | -0.07% | -0.09% | 0.02% | -0.22% | -0.12% | |
| AUD | -0.04% | -0.10% | -0.09% | -0.12% | -0.02% | -0.23% | -0.13% | |
| NZD | 0.18% | 0.13% | 0.14% | 0.14% | 0.22% | 0.23% | 0.12% | |
| CHF | 0.11% | 0.05% | 0.05% | 0.03% | 0.12% | 0.13% | -0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
Recommended Articles
Comments (0)
Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.