Key Points:
- The Kiwi (NZDUSD) traded around 0.5712, holding onto weekly gains despite a slight pullback.
- Trump’s shifting tariff policies fueled uncertainty, weighing on the U.S. dollar as investors await U.S. non-farm payrolls for further economic signals.
- China’s additional stimulus pledges continued to support the Kiwi.
- RBNZ Governor Orr’s resignation adds a layer of domestic uncertainty.
NZDUSD Holds Above 0.5710 Despite Pullback
The NZDUSD (New Zealand dollar/US dollar pair) traded around 0.5712, maintaining a weekly gain despite a mild retreat in Friday’s session. A weaker U.S. dollar, driven by trade policy uncertainty and shifting tariff decisions, has helped support the Kiwi.
Technical Analysis
Picture: NZDUSD slides to 0.57117, testing support at 0.57009 as bearish momentum builds, as seen on the VT Markets app
NZDUSD declined 0.32%, closing at 0.57117 after opening at 0.57299. The price tested a high of 0.57406 and a low of 0.57104, indicating mild bearish pressure.
The moving averages (MA 5,10,30) suggest a downtrend, with short-term MAs crossing below the longer-term trend. The MACD (12,26,9) histogram is in negative territory, reflecting continued downside momentum.
Key support is at 0.57009, while resistance is seen at 0.57595. A break below support may trigger further selling, whereas a push above resistance could signal recovery.
U.S. Trade Policy Adds to Uncertainty–Key Economic Data in Focus
The U.S. dollar softened after President Trump announced a temporary tariff reprieve for auto imports from Mexico and Canada, reversing an earlier decision to impose a 25% duty. Markets remain cautious as the lack of clarity in trade policy raises concerns about global economic stability.
Traders are now looking ahead to the U.S. non-farm payrolls report, which could influence Federal Reserve policy expectations. Meanwhile, domestic uncertainty lingers following Reserve Bank of New Zealand Governor Adrian Orr’s resignation, with markets awaiting potential policy direction shifts.
China’s Stimulus Supports Kiwi Strength
NZD also found additional support from China’s fresh stimulus commitments, extending beyond its fiscal measures outlined in Wednesday’s annual work report. This has helped improve risk sentiment, benefiting the commodity-linked currency.
Market Outlook
NZDUSD remains resilient as long as global risk sentiment holds firm. However, a strong U.S. jobs report could apply downward pressure, while weak data may propel the pair higher.
