Published on May 8, 2023

Daily Analysis For NZD/USD 08-05-2023

NZD/USD Analysis

Economic Events and Scenario for NZD/USD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) BoJ Monetary Policy Meeting Minutes	Medium	JPY
01:00	(France) Victory in Europe Day	None	EUR
01:00	(United Kingdom) Bank Holiday for the coronation of King Charles III	None	GBP
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
02:30	(Australia) Building Permits MoM	Medium	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
02:30	(Australia) NAB Business Confidence	High	AUD
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) CPI	Low	EUR
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Balance of Trade	Low	EUR
10:30	(Germany) 3-Month Bubill Auction	Low	EUR
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Industrial Production MoM	Low	EUR
11:00	(Latvia) Industrial Production YoY	Low	EUR
15:00	(El Salvador) Inflation Rate YoY	Low	USD
15:00	(El Salvador) Inflation Rate MoM	Low	USD
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
23:45	(New Zealand) Electronic Retail Card Spending MoM	Low	NZD
23:45	(New Zealand) Electronic Retail Card Spending YoY	Low	NZD

Today's Scenario: - During the early trading hours on Monday, NZD/USD has shown the highest percentage gain among the G10 currency pairs, rising by half a percent. However, the pair has retreated from its highest levels since early April, after reversing a U-turn from those levels on Friday. Currently, buyers of the Kiwi pair are testing the round figure of 0.6300.

Buy Scenario: - The NZD/USD pair is up by half a percent during early Monday, with buyers pushing the pair towards the 0.6300 round figure. This increase in strength can be attributed to a successful upside break of the 100-day moving average (DMA), as well as bullish signals from the moving average convergence divergence (MACD) and a positive but not overbought relative strength index (RSI) (14) line.

The pair is now poised to challenge a downward-sloping resistance line from February, which is currently around 0.6320. If the bulls succeed in breaking through, the next target is the 61.8% Fibonacci retracement level of the February-March downside, near 0.6365. However, a three-month-old horizontal resistance area near 0.6385-90, followed by the 0.6400 round figure, may pose a challenge to the bullish momentum. Till we do not advise to buy NZD/USD.

Sell Scenario: - On the downside, a daily close below the 100-DMA level of around 0.6275 may not bode well for the NZD/USD bears. In this scenario, a one-week-long ascending trend line and the 38.2% Fibonacci retracement level could provide support near 0.6260. If the pair falls below this level, there is a possibility of a quick drop towards the 0.6200 round figure. Till we do not advise to sell NZD/USD.

Support and Resistance Level: -