NZDUSD bounces after testing the lower swing area

NZDUSD

NZDUSD sees risk off flows today

The NZDUSD yesterday moved to the highest level since January 19 after the RBNZ hiked rates by 25 basis points, and said that it was a close call to raising by 50 basis points. It was the 3rd hike in a row and more are expected going forward.

The high price reached 0.68087. That tested swing highs going back to January 18, January 19, and January 20 near that level.

Since reaching the high, it’s been downhill run ever since with a small pause after the pair broke below its 100 hour moving average (blue line) earlier today currently at 0.6727.

After falling below that level, the price conosolidated, and corrected higher, retesting the moving average. After sellers leaned against the level, and ultimately pushed the price below the 200 hour moving average (green line currently at 0.66936), the selling intensified. Strong dollar buying helped the flows.

The price for the  NZDUSD 
NZD/USD

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for
forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.
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ultimately bottomed near 0.6630. That was near the top of a swing area between 0.6622 and 0.66313. The price has since bounced and currently trades at around 0.6650.

If a bottom is in (at least temporarily), w all hat would give the dip buyers some added comfort?

The 0.6659 to 0.66669 area would be an area to get to and through. The lower level represents a number of swing lows and swing highs (see green numbered circles). The higher level is the 38.2% retracement of the 2022 trading range. Get above each would give the buyers some breathing room and additional comfort.

Absent that, and the sellers are more in control. The aforementioned swing area between 0.6622 and 0.66313 would be the next target to get to and through. Move below that and traders would target a lower swing area between 0.6588 and 0.6595.

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