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The NZDUSD is developing flat dynamics

3/6/2023 10:56 AM

The NZD/USD pair shows mixed trading dynamics, again testing 0.6200 for a breakdown. Market activity remains low, and investors are waiting for the publication of new instrument movement drivers.

Released on Friday, March 3, optimistic macroeconomic data did not provide significant support to the American currency. The Institute for Supply Management (ISM) Services PMI corrected from 55.2 points to 55.1 points in February with the expected 54.5 points, and the S&P Global Composite PMI adjusted from 50.2 points to 50.1 points with a neutral outlook. Investors are also evaluating the comments of the US Federal Reserve representatives, hoping to hear hints on the possible timing of the completion of the current cycle of tightening monetary policy. For example, the President of the Federal Reserve Bank (FRB) of Atlanta, Raphael Bostic, in one of his speeches, signaled in favor of a pause in raising interest rates by mid-summer, when the value is likely to be above the psychological level of 5.0%.

In turn, the New Zealand dollar continues to respond positively to statistics from China, where there is a fairly active economic recovery after the authorities abandoned the "zero tolerance" policy for COVID-19. On Friday, the Services PMI from Caixin was released, which in February strengthened from 52.9 points to 55.0 points, while the forecast was at 50.5 points. At the same time, Export Prices in New Zealand in the fourth quarter of 2022 lost 0.6% after rising by 3.1% in the previous period, and the volume of exports for this period decreased by 6.3% after increasing by 5.5%. The average value of imports showed negative dynamics at -2.1% compared to an increase of 7.1% earlier, signaling the continuing problems in the national economy.

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, never reaching the level of "80", reversed into a descending plane, reacting to the appearance of the "bearish" trend at the end of the last trading week.

Resistance levels: 0.6250, 0.6288, 0.6350, 0.6400. | Support levels: 0.6200, 0.6155, 0.6100, 0.6050.

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