Solid News

New Zealand Dollar Shows Mixed Trading

12/19/2022 11:33 PM

The New Zealand dollar shows a slight increase, developing a corrective momentum formed at the end of last week. The NZD/USD pair showed an active decline last Thursday, reacting to the growth of the US currency positions in almost the entire spectrum of the market.

The reason for the appearance of "bearish" dynamics was the results of the US Federal Reserve meeting: as expected, the regulator decided to raise the interest rate by 50 basis points after a fourfold increase in the rate by 75 basis points. At the same time, the Chair of the Fed, Jerome Powell, indicated that the value is likely to remain high for a longer time than originally estimated. In addition, the US Federal Reserve is determined to continue the fight against high consumer inflation, which, meanwhile, is demonstrating a steady downtrend. Last week's data showed the US Consumer Price Index falling to 7.1%, which, however, remains well above the 2.0% target.

Moderate pressure on the positions of the US currency on Friday, December 16, was exerted by macroeconomic data. The Services PMI from S&P Global in December corrected from 46.2 points to 44.4 points with a forecast of growth to 46.8 points, the Manufacturing PMI adjusted from 47.7 points to 46.2 points, while the market was counting on zero dynamics, and the Composite PMI corrected from 46.4 points to 44.6 points.


On the D1 chart, Bollinger Bands demonstrate a tendency to reverse into a horizontal plane. The price range is narrowing, reflecting the multidirectional dynamics appearance in the short term. MACD is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic is showing similar dynamics; however, the indicator line is rapidly approaching its lows, indicating the risks of New Zealand dollar being oversold in the ultra-short term.

Resistance levels: 0.6400, 0.6450, 0.6500, 0.6535. | Support levels: 0.6350, 0.6288, 0.6250, 0.6200.


Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392


Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using solidecn.com you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2023 SolidECN.com