💱New Zealand Dollar/US Dollar FX Spot Rate
NZDUSD
▲ PositiveMonetaryrelevance
Fed holds rates and Warsh's dovish signal weakens USD, supporting NZD; Chinese PMI contraction weighs on NZD but overall USD weakness dominates.
Impact on assets 1
Others
NZD/USD pulled back from eight-week highs at 0.5885 but remains above previous highs around 0.5860, keeping bears at bay for now. The pair is on track for a nearly 1.5% weekly rally, buoyed by US Dollar weakness after the Federal Reserve left its Federal Funds Rate unchanged at the 3.50%-3.75% range and Chairman Warsh’s lack of guidance was taken as a dovish sign. Kiwi bulls lost some momentum on Friday after Chinese NBS Manufacturing PMI figures showed an unexpected contraction in July, weighing on the New Zealand Dollar given China’s role as a major trading partner. Technical analysis shows the 4-Hour RSI remains above 70, hinting at overbought conditions, while the MACD stays above its signal line, suggesting upside pressure is intact. A deeper correction below 0.5860 could find support between the ascending trendline from June 25 lows at 0.5785 and the July 23, 27, and 29 lows around 0.5865, while resistance above 0.5885 lies at the 78.6% Fibonacci retracement of the June sell-off at 0.5911 ahead of June’s peak near 0.6000.
Fed holds rates and Warsh's dovish signal weakens USD, supporting NZD; Chinese PMI contraction weighs on NZD but overall USD weakness dominates.