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- NZD/USD merges near 0.6000 after touching a six -month height.
- The federal reserve leaves rates unchanged but highlights high inflation and unemployment risk.
- Technical indicators offer a mixed look, with major support at 0.5920 and resistance at 0.5950.
NZD/USD pair It is declined from a six -month rise near 0.6025 reached earlier on Wednesday, and about 0.6000 trading with investors investing with the federal reserve policy tone (Fed) and mixed Economic data From New Zealand. The Federal Reserve maintained the policy rate unchanged at 4.25 % -4.50 % in line with the market expectations, but acknowledged that high inflation and unemployment risk, adding a layer of uncertainty in the market.
The federal reserve policy statement again confirmed its data -based approach, with highlighting that inflation is still “somewhat high” and that the risks of both unemployment and inflation have increased. This cautious tone, along with the continuous public budget reduction, supported US dollar (USD), pressure on the New Zealand dollar (NZD). The US dollar index (DXY) is still constant near 99.50, which reflects cautious market morale before the press conference of the President of the Federal Reserve Jerome Powell.
Meanwhile, New Zealand labor market data is added to kiwi boxes. The unemployment rate remains unchanged at 5.1 %, surprisingly, the markets that expected a slight increase to 5.3 %. However, the employment cost index grew at a slower pace than expected, which enhances expectations for further mitigating by the Reserve Bank in New Zealand (RBNZ). RBNZ is likely to maintain Duofish’s position, with market pricing in additional price cuts in the coming months.
Technical analysis
Technically, NZD/USD faces initial resistance at 0.5943, followed by 0.5948 and 0.5952. On the negative side, support is seen at 0.5930, 0.5915 and 0.5886. RSI neutral at 55.28, while MACD shows a huge difference, indicating a possible correction. However, the long -term moving averages, including SMA for 100 days (0.5728) and 200 days SMA (0.5886), indicates a more upward look, while maintaining the wider direction intact.
In short, the future look remains NZD/USD mixed with the husband to unify the recent gains, as the market morale is likely to depend on the FBI’s guidelines and more clarity on the economic path of New Zealand.
