New Zealand dollar struggles to break key resistance but maintains upward trend
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Daily Currency Update
The New Zealand Dollar (NZD) recently tested resistance near the US$0.5980 level—marked by the September 11 high—but was unable to sustain a breakout earlier this week. Despite this setback, the currency maintains its broader bullish momentum, supported by a prevailing risk-on sentiment in global markets. Looking ahead, a decisive break above the US$0.5980 resistance would open the door for the NZD to challenge its next key hurdle around the August 13 high, which sits just shy of the psychologically significant US$0.6000 mark. Should buying interest continue to build, the currency could then set its sights on the July 28 peak near US$0.6030. On the downside, immediate support lies within a narrow zone between the bottom of the recent ascending triangle pattern, currently near US$0.5960, and the September 15 low at US$0.5950. A breach below this area could expose further support levels around US$0.5915, a level that coincides with both the September 1 high and the September 11 low, reinforcing its significance as a technical floor. Overall, the NZD remains in a broadly positive technical posture but is currently navigating a key resistance area. Traders and investors will be closely watching for a confirmed breakout or a potential pullback ahead of upcoming economic data and broader market cues.Key Movers
The US Federal Reserve has cut interest rates for the first time in nine months, signalling a cautious shift in monetary policy amid growing economic uncertainties. On Wednesday (US time), the central bank lowered the benchmark federal funds rate by 25 basis points, bringing it down from 4.50% to 4.25%. While the quarter-point reduction was widely anticipated by markets, the move has sparked debate over whether it was timely or sufficient. President Donald Trump has been vocally critical of the Federal Reserve’s measured approach to rate cuts, repeatedly urging the central bank, and its Chair, Jerome Powell, to act more aggressively in easing monetary policy. The President’s frustration stems from concerns that the Fed’s reluctance to lower rates sooner or by a larger margin could hamper economic growth and global competitiveness. This latest rate cut reflects the Fed’s balancing act between supporting the economy and maintaining inflation and financial stability. As trade tensions and global growth concerns persist, investors and policymakers alike will be closely watching how the central bank navigates the evolving economic landscape in the months ahead.Expected Ranges
- NZD/USD: 0.5850 - 0.6050 ▲
- NZD/EUR: 0.4950 - 0.5150 ▲
- GBP/NZD: 2.2800 - 2.3000 ▼
- NZD/AUD: 1.1050 - 1.1250 ▼
- NZD/CAD: 0.8100 - 0.8300 ▲