The New Zealand Dollar (NZD) extended its rally against the US Dollar (USD), registering gains of more than 1% following the latest US inflation report, which reduced speculation of a Federal Reserve rate hike and halved investors' bets on such a move [1]. At the time of reporting, the NZD/USD pair was trading at 0.5809, having earlier reached a daily high of 0.5843 before sellers pushed the price back toward the 0.5800 level [1].
Technically, the NZD/USD trend remains downward, with the pair still trading below both the 50- and 200-day Simple Moving Averages (SMAs), which are clustered around 0.5810-0.5819 [1]. Momentum indicators, such as the Relative Strength Index (RSI), turned bullish on July 9, and the pair consolidated around 0.5750 for three days before moving higher [1]. Should NZD/USD decisively clear the 50- and 200-day SMAs, it could target the 100-day SMA at 0.5834, with further resistance at the March 19 daily high of 0.5892 and the February 26 high of 0.6014 [1]. On the downside, a break below the day's low of 0.5744 could accelerate losses toward 0.5700 and the July 8 daily low at 0.5672 [1].
For the week, the New Zealand Dollar was the strongest performer against the Japanese Yen, gaining 1.17% [1]. It also posted gains against other major currencies, including a 0.85% rise versus the US Dollar, 0.70% against the Euro, and 0.81% against the British Pound [1].
No forward-looking statements or analyst opinions were provided in the article [1].
CONCLUSION
The NZD/USD pair saw a notable rally of over 1% after US inflation data reduced expectations for a Federal Reserve rate hike. Technical indicators suggest potential for further gains if key resistance levels are breached, while downside risks remain if support levels fail. The New Zealand Dollar also outperformed most major currencies this week, particularly the Japanese Yen.