• Thu. May 30th, 2024

NZD/USD remains on the defensive near 0.6000, traders await RBNZ’s Orr speech

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  • NZD/USD trades on a softer note near 0.6000 after retracing from a weekly top of nearly 0.6030 on Wednesday. 
  • The rate-cutting expectation and dovish comments from Fed officials exert some pressure on the US Dollar. 
  • The technical recession in New Zealand’s economy in Q4 2024 will leave ample space for RBNZ to cut the rate sooner than expected. 
  • Investors await the RBNZ’s Orr speech for fresh impetus. 

The NZD/USD pair remains on the defensive around 0.6000 despite the weaker US Dollar (USD) during Wednesday’s early Asian session. The ANZ Business Confidence will be due from the New Zealand docket, and Reserve Bank of New Zealand (RBNZ) Governor Orr is set to speak later in the day. Nonetheless, the market is likely to be mute in light trading ahead of the Good Friday holiday.

The US Federal Reserve (Fed) decided to hold interest rates between 5.25% and 5.5% at its March meeting last week. The Fed Chair Jerome Powell did not specify the timing for cutting rates but hinted that the first rate cut will be determined by what inflation measures and other key economic data show. Several Fed officials agreed to wait and see more evidence of inflation that ensures it heads back down to the 2% target before it cuts rates. Fed Governor Christopher Waller and Chicago Fed President Austan Goolsbee anticipate three cuts this year. Dovish comments from Fed officials weigh on the Greenback against its rivals.

On the Kiwi front, the technical recession in New Zealand’s economy in the final quarter of 2024 leaves ample space for the Reserve Bank of New Zealand (RBNZ) to cut the official cash rate (OCR) sooner than expected. An aggressive RBNZ rate-cutting cycle would in turn likely weigh on the NZD and create a headwind for the NZD/USD pair.

The US Personal Consumption Expenditures Price Index (PCE) data for February are due on Friday. The Fed’s Powell is also scheduled to speak on the same day. In the case of slowing inflation data, this could prevent any rate cuts from the Fed and exert some selling pressure on the USD.

NZD/USD

OVERVIEW
Today last price 0.6003
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.6003
TRENDS
Daily SMA20 0.6104
Daily SMA50 0.6114
Daily SMA100 0.6134
Daily SMA200 0.6076
LEVELS
Previous Daily High 0.6014
Previous Daily Low 0.5986
Previous Weekly High 0.6107
Previous Weekly Low 0.5989
Previous Monthly High 0.6219
Previous Monthly Low 0.6037
Daily Fibonacci 38.2% 0.5997
Daily Fibonacci 61.8% 0.6003
Daily Pivot Point S1 0.5988
Daily Pivot Point S2 0.5973
Daily Pivot Point S3 0.596
Daily Pivot Point R1 0.6016
Daily Pivot Point R2 0.6029
Daily Pivot Point R3 0.6044
On Key

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