Key Takeaways
- The New Zealand Dollar has retreated from weekly highs, falling below 0.5740 against the US Dollar.
- Trading volumes are subdued as markets await the crucial US Consumer Price Index (CPI) data.
- Global trade uncertainties stemming from US-China and US-Canada relations are impacting market risk appetite.
- NZD/USD is currently trading within an ascending wedge pattern on the 4-hour chart.
- Key technical levels to watch include support at 0.5730 and resistance around 0.5760.
NZD/USD Pares Gains Ahead of Key US Inflation Data
The New Zealand Dollar (NZD) has relinquished its earlier gains, trading below the 0.5740 mark on Friday. This retreat follows a weekly high point observed around 0.5760. Market activity is notably subdued as traders hold their positions ahead of the highly anticipated release of the US Consumer Price Index (CPI) later today.
The US Dollar is currently navigating recent trading ranges against its major currency counterparts. This trading behavior is attributed to prevailing uncertainty surrounding global trade dynamics. Recent actions, including US President Trump’s comments on terminating negotiations with Canada and curbs on software exports to China, have intensified strains on already fragile relationships with two major global economies. This geopolitical tension is dampening investor appetite for riskier assets.
Technical Analysis: NZD/USD Forms Ascending Wedge
From a technical standpoint, an examination of the 4-hour chart reveals that the NZD/USD pair is consolidating within an ascending wedge pattern. Resistance is currently observed in the 0.5760 area. This level coincides with the crossing point of the October 10 and 22 highs with the upper boundary of the wedge, effectively capping any upward price movements.
💡 The pair is presently testing an intraday support level at 0.5740. This is situated just above the lower boundary of the wedge formation, which lies at 0.5730.
📍 A confirmed breach and sustained movement below the 0.5730 support level could pave the way for a further decline towards the 0.5700-0.5710 region. This zone previously acted as a containment area for the pair on October 15, 17, and 21. Should the downward pressure persist, the next significant support target emerges near the October 14 low of 0.5680.
📊 On the upside, immediate resistance is situated at the aforementioned 0.5760 level. Beyond this, key resistance points include the October 8 high at 0.5805, followed by the October 6 high at 0.5855.
US Dollar Price Performance Today
The table below displays the percentage change of the US Dollar (USD) against major listed currencies for the current day. Notably, the US Dollar exhibited the strongest performance against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.16% | 0.24% | 0.27% | 0.24% | 0.22% | 0.19% | |
| EUR | -0.08% | 0.09% | 0.18% | 0.20% | 0.17% | 0.14% | 0.12% | |
| GBP | -0.16% | -0.09% | 0.08% | 0.10% | 0.08% | 0.04% | 0.02% | |
| JPY | -0.24% | -0.18% | -0.08% | 0.03% | -0.00% | -0.04% | -0.05% | |
| CAD | -0.27% | -0.20% | -0.10% | -0.03% | -0.04% | -0.06% | -0.09% | |
| AUD | -0.24% | -0.17% | -0.08% | 0.00% | 0.04% | -0.03% | -0.06% | |
| NZD | -0.22% | -0.14% | -0.04% | 0.04% | 0.06% | 0.03% | -0.03% | |
| CHF | -0.19% | -0.12% | -0.02% | 0.05% | 0.09% | 0.06% | 0.03% |
This heatmap illustrates the daily percentage changes among major global currencies. The base currency is listed in the left column, and the quote currency is in the top row. The figures represent the percentage change of the base currency relative to the quote currency.
Final Thoughts
The NZD/USD pair currently exhibits a bearish bias, trading within a descending technical pattern as it anticipates key US economic data. Geopolitical trade tensions are contributing to market caution, influencing currency movements and risk sentiment.