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NZDUSD Consolidation Near Record Lows

10/17/2022 12:29 PM

The New Zealand dollar shows a slight increase, consolidating near 0.5575 and the record lows of spring 2020, updated at the end of last week.

The current upward dynamics of the NZD/USD pair is mainly due to technical factors, while the news background from New Zealand remains quite negative and puts additional pressure on the instrument's positions. In particular, statistics were released last Friday showing a decrease in Manufacturing PMI of New Zealand in September from 54.8 points to 52.0 points, which turned out to be worse than analysts' expectations of a reduction to 52.5 points.

Today's data pointed to a decline in the Business NZ Services PMI in September from 58.6 points to 55.8 points, which also turned out to be significantly worse than most market forecasts. Investors are looking forward to tomorrow's publication of statistics on consumer inflation in New Zealand for the third quarter: analysts are quite optimistic and expect price growth to slow down from 7.3% to 6.3%, and in quarterly terms, the index is projected to correct from 1.7% to 1.6%.

On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range expands from below, making way for new local lows for the "bears". MACD is growing preserving a weak buy signal (located above the signal line). Stochastic is showing a more confident growth being located in the middle of its area.

Resistance levels: 0.5650, 0.5720, 0.5800, 0.5850. | Support levels: 0.5534, 0.5467, 0.5400, 0.5350.

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