The New Zealand Dollar (NZD), often referred to as the Kiwi, has witnessed a remarkable rebound against the US Dollar (USD), climbing back into the crucial 0.6000 level. This surge comes in the wake of significant developments in US economic indicators, notably the Consumer Price Index (CPI) and impending Producer Price Index (PPI) and Retail […]
The NZD/USD dropped sharply below 0.6100, impacted by China’s sluggish economic recovery and the US Dollar’s strength. Disappointing Chinese trade data and a narrowed US trade deficit contributed to the decline. Mixed signals from US central bank speakers added complexity. Technically, the NZD/USD is approaching key support levels. Traders now await critical economic data from both China and the US.
The NZD/USD pair has faced resistance at the critical level of 0.6180, indicating that the market sentiment is bearish. The US Dollar Index has extended its recovery above 101.70, and consistent US consumer spending and a jump in the labor cost index data have advocated for further interest rate hikes from the Fed. These factors suggest that the USD is likely to gain strength against the NZD in the short-term.