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The NZDUSD Failed to Consolidate on New Local Highs

11/3/2022 11:14 AM

The New Zealand dollar is consolidating near 0.5830. The NZD/USD pair is trying to restore the "bullish" signal formed on Tuesday, but now there are no drivers for a trend change. The day before, the instrument showed multidirectional, but active dynamics, fixing a slight decrease after the results of the US Federal Reserve meeting on interest rates.

The US regulator, as predicted, corrected the value by 75 basis points for the fourth time in a row, bringing it to a new record high of 4.0%. The last time the interest rate in the United States rose so actively was in 1994. The Chair of the regulator Jerome Powell, commenting on the decision, was as neutral as possible in his rhetoric. However, forecasts for the December adjustment have been revised down: at the moment, only about 30% of analysts expect a 75 basis point hike in interest rates, while almost 65% expect a 50 basis point change.

Significant support for the New Zealand dollar yesterday was provided by optimistic macroeconomic statistics. Employment Change in the third quarter unexpectedly rose strongly by 1.3%, while analysts had expected only 0.5%. The share of the labor force in the total population also increased markedly from 70.9% to 71.7%, exceeding the projected 71.0%. The Unemployment Rate in the third quarter remained at around 3.3%, while analysts had expected a decline to 3.2%.

On the D1 chart Bollinger Bands are trying to reverse horisontally. The price range is narrowing, pointing at the multidirectional trend in the short term. MACD histogram preserves the uptrend and a weak buy signal (located above the signal line). Stochastic, in turn, demonstrates a much more confident decline and practically does not react to upward correction attempts in recent days.

Resistance levels: 0.5850, 0.5900, 0.5941, 0.6000. | Support levels: 0.5773, 0.5720, 0.5671, 0.5621.

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