NZDUSD Analysis – December-18-2023

The NZDUSD currency pair recently experienced an upswing, reaching the peak of last week’s high as it approached the Ichimoku cloud. Delving into the 4-hour chart, we observe that the ADX lines are positioned below the 20 level, a significant detail in technical analysis. Consequently, the NZDUSD pair has exhibited a ranging pattern in today’s trading session, indicating a lack of strong momentum.

Further analyzing the pair, the Relative Strength Index (RSI) is maintained above the 50 mark, and the Awesome Oscillator bars are colored green. When considered alongside the overall market trend, these technical indicators suggest that the NZDUSD’s value is poised for an upward trajectory, targeting the upper band of the bullish flag. The Ichimoku cloud and the lower band of the bullish flag lend support to this bullish technical analysis. This NZDUSD forecast remains optimistic if the pair trades above these critical levels.

NZDUSD Technical Analysis – 4H Chat

New Zealand Stocks Hit 4-Month High

Reuters – On Monday, New Zealand’s stock market concluded on a high note, marking a near four-month peak with an increase of 14.78 points or 0.13%, reaching 11,564.98. This rise was buoyed by a positive trend in US futures, following Wall Street’s impressive seven-week winning streak. Speculation about the Federal Reserve potentially cutting interest rates three times in the upcoming year and possibly four times in 2025 added to the optimism.

Domestically, New Zealand’s service sector saw its most significant expansion in six months, while consumer sentiment soared to its highest in nearly two years. This boost in confidence is credited mainly to the political stability brought about by forming a new government in Wellington.

In international news, China, a major trading partner, saw its central bank inject a substantial CNY 800 billion into the economy, a move complemented by easing home-buying restrictions in Beijing and Shanghai. In the New Zealand stock market, energy and non-energy minerals led the charge, closely followed by the healthcare sector. Notable gains were observed in several companies, with Ebos Group climbing by 3.7%, Fletcher Building by 3.2%, Mercury NZ Ltd. by 2.8%, and Mainfreight Ltd. by 1.9%.