Solid News

The New Zealand Dollar Updates Local Highs

12/5/2022 10:49 AM

The New Zealand dollar shows a moderate increase, developing a strong "bullish" signal formed last week. NZD/USD is testing 0.6430 for a breakout, updating local highs from August 15.

The uptrend is largely due to technical factors, while fundamental data and macroeconomic statistics remain ambiguous. The US dollar received a short-term impetus to growth after the publication of data on the national labor market on Friday, December 2. In particular, the report reflected an increase in the number of Nonfarm Payrolls in November by 263.0 thousand after an increase of 284.0 thousand (revised from 261.0 thousand) in the previous month, while analysts expected an increase of only 200.0 thousand.

Some pressure on the position of the instrument is exerted by weak macroeconomic statistics from New Zealand and China. The New Zealand ANZ Commodity Price Index in November showed a decrease of 3.9% after a decline of 3.4% in October, although analysts expected -1.5%. In turn, the Caixin Services PMI in China in November corrected from 48.4 points to 46.7 points, with the forecast of growth to 48.8 points.

Meanwhile, according to a survey conducted by the New Zealand Herald, social inequality is increasing in the country, which is based on increasing differentiation of citizens by income level. Also, 74% of New Zealanders pointed to an increase in property stratification due to the uneven opportunities for the country's residents to change their living conditions (about 70% of respondents said this). In addition, the quarantine decisions of the government during the development of the coronavirus pandemic have affected the decrease in the cohesion of the nation.


Bollinger Bands in D1 chart show active growth. The price range is expanding but it fails to conform to the surge of "bullish" activity at the moment. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic, having approached its highs, reversed into a horizontal plane, indicating the risks of overbought New Zealand dollar in the ultra-short term.

Resistance levels: 0.6450, 0.6500, 0.6535, 0.6600. | Support levels: 0.6400, 0.6350, 0.6288, 0.6250.


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


Disclaimer 1: Solid ECN Securities LLC and it affiliates does not accept clients from Turkey, United States, and Europe.
Disclaimer 2: 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.
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.
Copyright All Right Reserved 2023 SolidECN.com