NZD/USD Drops To Near 0.5950 Ahead Of Fed Decision On Wednesday -

NZD/USD Drops To Near 0.5950 Ahead Of Fed Decision On Wednesday

Apr 30, 2024Jeremy ParkinsonFinance0

NZD/USD loses ground due to Tuesday’s rebound in the US Dollar.

The hawkish remarks from Fed officials indicate that there is no immediate need for interest rate cuts.

ANZ Business Confidence has marked its lowest level since last September, indicating a significant economic deterioration.

NZD/USD retraces its recent gains, trading around 0.5950 during the Asian session on Tuesday. The rebound in the US Dollar (USD) undermines the NZD/USD pair, which could be attributed to the hawkish remarks from US Federal Reserve (Fed) officials, indicating no immediate need for rate cuts.The Economic Times reported on Monday that Fed Chair Jerome Powell said it would probably take “longer than expected” to be confident that inflation is moving toward the central bank’s 2% target. Powell also noted that the central bank can keep rates high “as long as needed.” Additionally, Fed Governor Michelle Bowman voiced her concerns about “upside risks” to inflation. Meanwhile, Minneapolis Fed President Neel Kashkari suggested the possibility of no rate cuts occurring this year.US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, edges higher to near 105.80, by the press time. Traders are anticipated to observe Wednesday’s release of the ADP Employment Change and ISM Manufacturing PMI from the United States (US), alongside the Fed Interest Rate Decision. These events are likely to influence market sentiment and USD movement.In New Zealand, the ANZ Business Confidence fell to 14.9 in April from March’s reading of 22.9, marking the third consecutive month of decline and hitting the lowest level since last September. This latest data suggests a notable weakening of the economy, likely influenced by the Reserve Bank of New Zealand’s (RBNZ) decision to raise interest rates.Moreover, amid decreasing concerns about a potential conflict between Israel and Iran, growing optimism regarding peace talks between Israel and Hamas in Cairo is enhancing investors’ appetite for riskier currencies such as the New Zealand Dollar (NZD). This sentiment could limit the losses of the NZD/USD pair.

NZD/USD

OVERVIEW Today last price 0.5949 Today Daily Change -0.0027 Today Daily Change % -0.45 Today daily open 0.5976

TRENDS Daily SMA20 0.596 Daily SMA50 0.6042 Daily SMA100 0.6111 Daily SMA200 0.6046

LEVELS Previous Daily High 0.5986 Previous Daily Low 0.5941 Previous Weekly High 0.597 Previous Weekly Low 0.5886 Previous Monthly High 0.6218 Previous Monthly Low 0.5956 Daily Fibonacci 38.2% 0.5969 Daily Fibonacci 61.8% 0.5958 Daily Pivot Point S1 0.5949 Daily Pivot Point S2 0.5923 Daily Pivot Point S3 0.5904 Daily Pivot Point R1 0.5994 Daily Pivot Point R2 0.6013 Daily Pivot Point R3 0.6039

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