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54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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NZDUSD turns bullish & breaks resistance at 0.65375

The New Zealand dollar had shown strong resilience against the US dollar, reclaiming its bullish momentum for three consecutive weeks. The pair started the new week with the bulls entirely in control and struggled to break its resistance at 0.65375, giving way to higher levels. Today, the Kiwi pair is holding firm and trading above this resistance during the Asian session. NZD/USD price is currently at the 0.6550 region.

What are the fundamental factors supporting the NZDUSD bullishness?

The recent bull trend of the New Zealand dollar has been supported by many factors such as:

US Bank Holiday

The US banks are currently embarking on a holiday today. The US stock market is closed because of the holiday. This means reduced volumes of transactions would be seen on the US dollar in the forex market today.

Other occurrences from the economic calendar

There is no significant economic activity to influence the New Zealand dollar this week apart from the influence of the US dollar. This gives the bulls more confidence in pushing for higher levels.

Weak USD

The dollar index has started the new week on a negative trend ranging at 101.3. Experts believe that the US dollar has exhausted its strength and dominance in the market. This means we can expect a reversal against the dollar for other pairs in the market.

Events to influence NZDUSD from the economic calendar today

The only data that pertains to the New Zealand dollar from the economic calendar is the figure from the 'building consent'. The building consent, also called 'building permits', measures the increase in the number of new building consents issued by the government. This data shows the rate of demand for housing in the country.

The previous reading for this data is 5.8%. A higher reading would be seen as positive and bullish news for the NZDUSD. A lower reading, therefore, would mean the opposite.

NZDUSD Forecast: Will the bullishness continue?

There is generally a mixed sentiment in the market regarding the NZDUSD. This is based on the comments from the Reserve Bank's new Chief Economist, Paul Conway, who foresees lower domestic inflation for NZD during the second half of 2022. Though he remained confident that New Zealand's central bank could guide the economy to a "soft landing" amidst raising the interest rates.

The bulls are expected to close above the monthly resistance at 0.65660 for the bullishness to continue. However, if they fail to achieve this, we might see some retracement to the next support at 0.64550.

Last Updated: 30/05/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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