- Buyers extended support as upbeat New Zealand GDP held the optimism triggered through FOMC.
- 0.6920 resistanceline still becomes a challenge for bulls.
NZD/USD surged more than 30 pips to after Statistics New Zealand released fourth-quarter gross domestic product (GDP) figures during early Asian session on Thursday. The pair maintains its early-day high to seven-week top after the US Fed meeting results. US Jobless claims and Philadelphia Fed manufacturing survey are in focus now.
New Zealand fourth quarter (Q4) 2018 GDP (QoQ) matched 0.6% market consensus versus 0.3% prior while the growth indicator rose 2.3% on a yearly basis against 2.5% forecast and 2.6% during the Q4 2017.
Ahead of the GDP result, the NZD/USD pair rallied to the highest in seven weeks as the US Federal Reserve disappointed greenback bulls by favoring no rate hikes during the year 2019 in its quarterly interest-rate forecast. The FOMC (Federal Open Market Committee) left headline Fed rate unchanged, as expected, whereas the Chairman Jerome Powell signaled balance sheet adjustments to end soon.
Next up in the trader’s radar will be the US initial jobless claims for the week ended on March 15 coupled with Philadelphia Fed manufacturing survey results for the current month.
Initial jobless claims are likely to have shrunk by 225K versus 229K prior whereas manufacturing gauge could reverse earlier -4.1 contraction figure with +4.5 number.
NZD/USD Technical Analysis
Unless clearing nine-month-old resistanceline, at 0.6920, chances of the NZD/SD pair’s pullback to 0.6825 can’t be denied. However, 61.8% Fibonacci retracement level of June – October decline at 0.6815, followed by 0.6800 round-figure may challenge the quote’s additional downside.
Alternatively, an upside clearance of 0.6920 enables the pair to aim for 0.6970 and 0.7000 numbers to the north with 0.7020/25 and 0.7060 being next in focus.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.