Instrument: NZDUSD
Bullish Preference:
Buy position is envisaged if price trades above 0.60579 With take profit at 0.60647
Bearish Preference:
Sell position is envisaged if price trades below 0.60487 with Take profit at 0.60411
Fundamentals:
USD: 3:35pm Flash Manufacturing PMI
Flash Services PMI
Comment:
The New Zealand dollar (NZD) has experienced a significant rally against the US dollar (USD), driven by a wave of optimism following China’s announcement of stable economic policies and the People’s Bank of China (PBOC) maintaining its rates at 3.45%.
This surge comes on the heels of market sentiments that were already lifted on Monday, after the PBOC affirmed its commitment to support China’s property sector with further economic measures. The positive reactions from these developments are indicative of the intricate relationship between New Zealand’s economy and China’s financial health, given China’s position as a major trading partner.
New Zealand’s retail sector displayed unexpected stability in the third quarter of 2023, with official figures showing no change in overall retail sales compared to the previous quarter, countering analysts’ predictions of a 0.8% decline. This flat growth rate comes despite varying performance across different segments, according to data released today.
With U.S. markets closed on Thursday for the Thanksgiving holdiay and due for a shorter trading session on Friday, currencies are likely to trade narrowly but possibly with some volatility as liquidity is expected to remain thin. The dollar index, which measures the U.S. currency with six peers, eased 0.058% to 103.71, staying close to the two-and-a-half month low of 103.17 it touched earlier this week.
Analysis: SCRUM Team