New Zealand Dollar Faces Pressure from Strong US Dollar and Domestic Economic Weakness

Summary:
The New Zealand dollar is experiencing pressure due to the strength of the US dollar, influenced by the Federal Reserve’s recent forecasts. Expectations are for only one interest rate cut this year, likely in December. The New Zealand services sector saw a significant decline in May, hitting its lowest point since 2007, reflecting the country’s recession. This downturn suggests the Reserve Bank of New Zealand might cut rates, with the main forecast being November, though they have indicated no rate cuts until mid-2025.
Technical analysis of the NZD/USD pair shows a downward trend. On the H4 chart, a correction wave is targeting 0.6055, with potential further declines to 0.6016, confirmed by the MACD indicator. On the H1 chart, a consolidation range around 0.6140 is expected to break down to 0.6080, then further to 0.6055, supported by the Stochastic oscillator.
Disclaimer: The provided forecasts are opinions and not trading advice. RoboForex is not responsible for trading results based on this analysis. This article is from an unpaid external contributor and does not represent Benzinga’s editorial stance.