NZDUSD Analysis
| Week Ending 2024-09-27 | |||
| Open | High | Low | Close |
| 0.63 | 0.64 | 0.63 | 0.63 |
| Performance | ||||||
| Period | Pct | Chg | Momentum | |||
| Friday | 0.2% | 12.9 Pips |  |
|||
| Week 2024-09-27 | 1.66% | 103.8 Pips |  September |
1.22% | 76.7 Pips | |
Upcoming key events for the new week (London Time)
Mon 06:00 PM Federal Reserve Chair Jerome Powell speech 
Thu 01:30 PM Initial Unemployment Insurance Claims Fri 01:30 PM Nonfarm Payroll Employment
What happened over the week
In the United States, the Index of Consumer Sentiment for September rose slightly to 70.1 points from 69 points in August, as reported by the University of Michigan. Consumer spending (PCE) for August decreased to 0.2% from 0.5% in July, and the PCE Price Index, as noted by the Bureau of Economic Analysis, dropped to 0.1% from 0.2% in July. However, the core PCE Price Index, which excludes food and energy, showed a 12-month increase to 2.7% in August from 2.6% in July. In Q2 of 2024, U.S. GDP grew at an annual rate of 3.0%, according to the third estimate released by the U.S. Bureau of Economic Analysis. Durable goods orders in August stagnated at 0%, a sharp contrast to the revised 9.9% increase in July. Initial unemployment insurance claims for the week ending on September 21 slightly decreased to 218,000 from 219,000, according to the Department of Labor. Meanwhile, the U.S. House Price Index for July improved to 0.1% from -0.1% in June, as per the Federal Housing Finance Agency.
The mixed economic data from the United States suggest conflicting signals about the economic recovery, potentially influencing investor sentiment and market movements. The rise in consumer sentiment may be positive for the U.S. economy, but the decreases in consumer spending and durable goods orders highlight possible economic headwinds. The modest rise in the core PCE Price Index indicates ongoing inflationary pressures. Collectively, these factors create a nuanced economic backdrop that could lead to uncertainty about future Federal Reserve policy actions.
The NZDUSD pair was up 0.2% to 0.63400 on Friday and gained 1.66% for the week ending September 27. The mixed U.S. economic data could contribute to this rise, as uncertainty about the economic outlook may weaken the U.S. dollar, making other currencies such as the New Zealand dollar more attractive. The upcoming events, including Federal Reserve Chair Jerome Powell’s speech and the Nonfarm Payroll Employment report, will be closely watched and could introduce volatility to the pair. Positive developments in these events could strengthen the U.S. dollar, potentially putting downward pressure on NZDUSD, whereas negative outcomes could further bolster the New Zealand dollar against the U.S. dollar.
From X (Twitter)
Latest release: GDP decreases 0.2 percent in the June 2024 quarter.https://t.co/NtLNDUou3s pic.twitter.com/newp7CGa5a
— Stats NZ (@Stats_NZ) September 18, 2024
What can we expect from NZDUSD for the new week and what happened on Friday?
NZDUSD on Friday rose 0.2% to 0.63. Price is above 9-Day EMA while Stochastic is falling. For the week ending 2024-09-27, the pair rose 1.66% or 103.8 pips higher.
Looking ahead, NZDUSD looks bullish as the pair ended higher after Friday trading session.
For the new week, our technical outlook looks bullish, immediate upside resistance level at 0.64 (WR1) with break above could target 0.64 (WR2). On the downside, we are looking at week low of 0.63 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.64 would suggest bullish bias after recent positive movement.
For the month of September, NZDUSD is up by 1.22% or 76.7 pips higher.
Weekly key levels to watch out:
| R3 | 0.65 |
| R2 | 0.64 |
| R1 | 0.64 |
| Weekly Pivot | 0.63 |
| S1 | 0.63 |
| S2 | 0.62 |
| S3 | 0.62 |
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