A1 Trading Company

May 24, 2021

Kiwi Dollar (NZD/USD)- Deep Dive Market Analysis

Frank Cabibi

Our Outlook

We think the news will be mixed with an overall bullishness to the pair as the USD sinks with inflation. NZD's lower inflation rate of 1.5% is a leg up on the USD. At least in the relative short term, seeing the kiwi gain traction over the dollar looks more possible now that the USD inflation rate looks worse than expected.

Fundamental Analysis

Rate and Policy Statements:

NZD reportedly added jobs in early May which shows a positive change from last quarter at 0.6% and a fall in unemployment rate from 4.9% to 4.7%. Next Tuesday, May 25 will be a big day for the currency with cash rate, monetary policy statement, rate statement and press conference. The pair is already on the rise based off the optimistic sentiment from the RBNZ monetary policy statement tomorrow.

Retail Sales:

Positive retail sales came out on the kiwi yesterday evening reporting better-than-expected numbers sitting at 2.5% growth q/q which was forecasted at -1.8%. This big jump in growth is sales is a great sign for the bulls on this pair, and paired with lower inflation, could boost price higher.

Technical Analysis

NZDUSD 4H Chart

This pair moves similarly to AUDUSD, and we are bullish on that pair. Price may likely find support in the .71400s as it closed under a long term trend line on the 4H chart. Price moved up from lows and is nearing the top of a wedge. Support lies below at .71444 if RBNZ news worries investors. But otherwise, it looks like the pair will at least test resistance on that falling trend line this week.

Retail Sentiment

Retail Sentiment Highlighted in Gold

Retail is majority short even after good retail sales news on NZD. The past month has been an uptrend for the pair, so it would take the big money to sell for us to start getting bearish sentiment.

A1 Edgefinder

AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Expecting A Pullback

Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]

Read More
Traders Wait For More Inflation Data

This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]

Read More
Trading Into PMI Data on EUR, GBP and USD

This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram