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The New Zealand Dollar is Consolidating Near 0.644

12/15/2022 10:43 AM

The New Zealand dollar shows a moderate decline, retreating from local highs from June 6, updated on Tuesday, December 13. The NZD/USD pair is testing 0.6430 for a breakdown, being under pressure from the rising US currency.

The US dollar received another impetus to growth against the backdrop of an increase in interest rates by the US Federal Reserve the day before. Even though the figure was only adjusted by 50 basis points after a quadruple increase of 75 basis points, the regulator still insists on a policy of high interest rates. The median forecast assumes an increase in the rate to 5.1% by the end of 2023, while previously the agency expected 4.6%.

In turn, the New Zealand dollar is moderately supported by optimistic macroeconomic data from New Zealand. Gross Domestic Product (GDP) in the third quarter rose by 2.0%, while analysts expected an increase of only 0.9%, and the figure in the previous period was at the level of 1.7%. In annual terms, the New Zealand economy added 6.4%, which was better than expected 5.5%.

Bollinger Bands on the daily chart show a steady increase. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the ultra-short term. MACD is declining, forming a new sell signal (located below the signal line). Stochastic demonstrates similar dynamics, having reversed downwards at the level of "80".

The development of the full-fledged downward correction is possible in the near future.

Resistance levels: 0.6500, 0.6535, 0.6600, 0.6650. | Support levels: 0.6450, 0.6400, 0.6350, 0.6288.

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