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NZDUSD Corrective Growth at the End of the Trading Week

12/23/2022 10:38 AM

The New Zealand dollar shows corrective growth, recovering from a four-day decline, as a result of which the NZD/USD pair updated local lows from November 30. The instrument is testing the level of 0.6270 for a breakout, receiving support from technical factors.

The American currency reacts positively to the data released the day before on the dynamics of the US Gross Domestic Product (GDP) for the third quarter. The revised estimate reflected economic growth of 3.2% against the previous 2.9%. At the same time, the number of Initial Jobless Claims for the week of December 16 increased from 214.0 thousand to 216.0 thousand, contrary to forecasts of an increase to 222.0 thousand, and Continuing Jobless Claims adjusted from 1.678 million to 1.672 million, while market forecasts suggested an increase to 1.683 million.

Investors' attention today is focused on macroeconomic statistics from the US. The most important among the publications will be data on the dynamics of Durable Goods Orders, as well as statistics on Personal Income and Spending. Forecasts suggest that in November Personal Income will slow down from 0.7% to 0.2%, while Durable Goods Orders could show a 0.6% decline after rising 1.1% the previous month.

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is expanding, but has not yet caught up with the surge of "bearish" activity. MACD is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic, having approached its lows is reversing into a side channel, signaling in favor of the development of corrective dynamics in the near future.

Resistance levels: 0.6288, 0.6350, 0.6400, 0.6450. | Support levels: 0.6250, 0.6200, 0.6155, 0.6100.

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