- NZD/USD consolidates within a symmetrical triangle on a 4-hour chart, reflecting short-term indecision.
- The growing wedge pattern on a daily chart signals a potential bear below 0.6038.
- Kiwi is testing critical psychological support at 0.6050.
The dollar of New Zealand (NZD) weakens on Friday to the American dollar (USD), because market participants weigh compact -term resistance to a weakening stubborn structure.
At the time of writing, the NZD/USD trades around 0.6050, retreating from the level of resistance 0.6120 after failure to fail the latest ups.
The 4-hour NZD/USD table displays a symmetrical triangle formula formed by a series of lower levels and higher minima, with the price in line with the exacerbation range.
This pattern usually indicates the indecision of the market, without bulls, or bears in full control and often precedes a breakthrough.
In this case, the triangle is formed just below 78.6% of Fibonacci’s withdrawal level from the lowest level from the lowest level from June to July. This level is in line with the psychological resistance 0.6070.
Dynamic support rests with a 100-speed SMA 0.6038.
4-hour NZD/USD table
On the NZD/USD daily chart, it still trades as part of the growing Klina formation, characterized by the coincidence of trends. This pattern usually signals potential bears reversal, especially when it is created near key resistance zones.
Daily chart NZD/USD
The relative force indicator (RSI) is currently 54, which indicates a bland stubborn rush, but without conviction. This adapts to a 4-hour table, in which the symmetrical triangle is created just below the same retaining zone, which suggests short-term consolidation in a wider, potentially weakening trend of growth.
The inheritance break below the wedge support on the daily table, especially at 61.8% with the level of withdrawal of Fibonacci the fall of September-April near 0.6038, would enhance the weight of the bear. However, breaking above the highest July 0.6120 may annul the pattern and signal a continuation in the direction of 0.6379 (level 78.6% of Fibonacci long -term movement).
New Zealand frequently asked questions
The dollar of New Zealand (NZD), also known as Kiwi, is a well -known commercial currency among investors. Its value depends widely through the health of the New Zealand economy and the policy of the country’s central bank. However, there are some unique special details that can also be made by the NZD movement. The performance of the Chinese economy tends to transfer kiwi because China is the largest trading partner in New Zealand. Bad news for the Chinese economy probably means less New Zealand exports to the country, hitting the economy and thus its currency. Dairy prices are another factor transferring NZD, because the dairy industry is the main export of New Zealand. High dairy prices enhance export income, positively contributing to the economy, and thus to NZD.
The Bank of the Bank of New Zealand (RBNZ) aims to achieve and maintain inflation rate from 1% to 3% in the medium period, with an emphasis on maintaining it near 2% of the average point. For this purpose, the bank sets an appropriate level of interest rates. When the inflation is too high, RBNZ will enhance interest rates to frosty the economy, but this traffic will enhance the enhance in bonds, increasing the investor’s appeal to invest in the country, and thus an enhance in NZD. On the contrary, lower interest rates tend to weaken the NZD. The so -called rate difference or how the rates in New Zealand are or are expected to be compared with those agreed by the US Federal Reserve, it can also play a key role in moving the NZD/USD pair.
The release of macroeconomic data in New Zealand is crucial for assessing the state of the economy and can affect the valuation of New Zealand dollar (NZD). A robust economy, based on high economic growth, low unemployment and high trust is good for the NZD. High economic growth attracts foreign investment and can encourage the Bank of New Zealand’s reserves to enhance interest rates if this economic force comes along with increased inflation. And vice versa, if the economic data is feeble, the NZD probably absorbs.
The Dollar of New Zealand (NZD) tends to strengthen during risk periods or when investors see that wider market risk is low and sanguine about growth. This leads to more favorable perspectives of goods and so -called “freight currencies”, such as kiwi. And vice versa, NZD tends to weaken market turbulence or economic uncertainty, because investors usually sell assets with a higher risk and run to more stable unthreatening paradise.
