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NZD/USD slips toward 0.5850 as USD firm and risk appetite fades
The pair remains below 0.5900 and traders are watching the 0.5850 support zone, with a deeper break toward 0.5760 flagged as a potential trend shift.
The New Zealand dollar edged lower against a firmer US dollar for a second straight day, with FXStreet citing fading market confidence tied to uncertainty around US-Iran peace negotiations and a boost to oil prices. NZD/USD is still confined within its roughly two-week trading range, but the focus has moved from the 0.5900 resistance area to the 0.5850 support level.
In the US, hawkish remarks from Cleveland Fed President Beth Hammack helped offset the impact from a weak US Nonfarm Payrolls report, supporting the dollar even as FX volatility remains subdued. Investors are also split ahead of September’s Fed meeting, leaving Wednesday’s US Consumer Prices Index report as the next key catalyst for the near-term rate outlook.
Technically, FXStreet notes that NZD/USD momentum appears to be weakening, with the daily 14-period Relative Strength Index hovering near 59 and the MACD histogram narrowing as bullish steam fades. It points to 0.5850 as a first major hurdle, followed by a potential confluence near the 200-day SMA and uptrend support around 0.5825, while a fall toward late-July lows near 0.5760 could confirm a broader shift.
On the upside, initial resistance is identified near the 78.6% Fibonacci retracement of June’s selloff at 0.5916, ahead of the May and June peak around 0.6000. FXStreet also reports the dollar was strongest against the New Zealand dollar in its day’s cross-currency snapshot.