On the daily chart, the USD to NZD exchange rate had been finding solid support near the 100 SMA. However, yesterday saw a notable shift as the price dipped below the 50 SMA, breaching this crucial moving average. The decline was driven by a stronger USD, causing the NZD/USD pair to drop to the lower end of its range before finding support from other moving averages and rebounding back to higher levels.

NZD/USD Chart Daily – Sellers Testing the Last MAs

The NZD has faced persistent pressure, largely due to periodic risk-off sentiment flows, which pose challenges for the Kiwi over the long term. Looking closely at the daily chart, NZD/USD has consistently bounced off the consolidation zone near the critical support level around 0.61. Buyers have consistently stepped in around this area, pushing the price upwards. However, yesterday saw sellers taking control, pushing the market below this pivotal level and breaking through the 0.61 mark, thereby intensifying negative momentum and setting the stage for a potential decline towards the 0.60 handle next. Last night we had the ANZ Business Confidence report.

ANZ Business Confidence for June