The NZD/USD has provided Forex speculators with another demonstration of dangerous price velocity which attracts some speculators and scares others, particularly conservative day traders.
The NZD/USD is near the 0.57230 ratio as of this writing. Price velocity has ripped through the NZD/USD in the past few days and readers are advised to compare current market conditions to this listed price here – there will be a difference worth noting. On the 17th of September the NZD/USD was trading around a high of nearly 0.59970, this in the wake of the U.S Federal Reserve lowering its interest rate by 25 basis points. But nearly a month later the NZD/USD touched a low of almost 0.56825 yesterday.
The NZD/USD it must be said has shown a rather strong downward track in recent weeks. Yet, speculators and financial institutions dealing with the New Zealand Dollar can point to the notion the NZD/USD was above the 0.58000 rather comfortably until late last week. But as heightened rhetoric about trade tensions between the U.S and China last Friday were heard, the currency pair did see stronger selling and was near the 0.57200 ratio.
Economics Matter for the NZD/USD
While the U.S government shutdown is starting to enter its second week and no U.S official economic data is forthcoming, the NZD/USD likely got hit by poor sentiment by rather disappointing statistics from New Zealand this past Monday. The BusinessNZ Services Index continued to show rather disappointing results, displaying via the survey that most service managers still believe the nation’s economy is suffering from contraction.
The U.S Federal Reserve is forecasted to lower its Federal Funds Rate on the 29th of October, but the NZD/USD had likely priced in this rate cut already. The NZD/USD selloff has been rather strong in the near-term, but some with bullish perspectives will likely believe the currency pair entered oversold territory when it below the 0.57000 ratio yesterday.
Speculative Pursuit of the NZD/USD
Day traders of the NZD/USD are accustomed to the speed the currency pair moves. Solid stop losses should be used by speculators to guard against sudden spikes which frequently hit the NZD/USD.
- The currency pair may look like it remains in oversold terrain to optimistic bulls, but they should take into consideration that timeframes regarding outlook could produce choppy results over the near-term.
- U.S and China trade tensions are not going to be solved today or tomorrow.
- Yes, loud rants have been heard before via the U.S White House under President Trump, but financial institutions that know this would still like a bit more clarity.
- The combination of rather lackluster economic data from New Zealand seen on Monday and storm clouds over the broad Forex market could make wagering in then NZD/USD a rather bumpy road short-term.
- Perception that the New Zealand Dollar is oversold may be proven right, but it may take a patient outlook to see higher values achieved.
NZD/USD Short Term Outlook:
Current Resistance: 0.57265
Current Support: 0.57215
High Target: 0.57425
Low Target: 0.57120
Top Forex Brokers
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