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The New Zealand dollar shows a moderate growth, developing a weak upward signal formed at the end of last week. The NZD/USD pair is testing 0.5820 for a breakout, remaining near the local highs from September 22, updated last week.

The growth of the New Zealand currency is limited by the expectations of the US Federal Reserve meeting, at which the interest rate may be increased by 75 basis points for the fourth time in a row. In addition, at the end of this week, October statistics on the labor market will be released in the US, which remains one of the important markers for the regulator to make a decision. The current forecasts assume an increase in the number of Nonfarm Payrolls by 220.0 thousand after an increase of 263.0 thousand in the previous month. At the same time, the Unemployment Rate may rise from 3.5% to 3.6% for the first time in a long time.

Additional pressure on the instrument is exerted by a block of statistical data from China. The Manufacturing PMI from the National Bureau of Statistics (NBS) in October showed a decrease from 50.1 points to 49.2 points, while the Non-Manufacturing PMI corrected from 50.6 points to 48.7 points, while analysts expected it to rise to 51.9 points.

Bollinger Bands in D1 chart show moderate growth. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic, on the other hand, maintains a confident downward direction, signaling in favor of the development of corrective decline in the ultra-short term.

Resistance levels: 0.5850, 0.5900, 0.5938, 0.6000. | Support levels: 0.5781, 0.5720, 0.5671, 0.5621.