Current trend

The NZD/USD pair maintains a moderate downward trend amid unstable dynamics of the American currency, trading at 0.6146, while the New Zealand dollar is prone to sideways movement.

Thus, data on sales in the electricity supply sector were published today. The July figure increased by 7.9B New Zealand dollars, 22.0% higher than a year earlier. Experts explain the dynamics are due to gas shortage and increased electricity generation in 2024. In addition, the Q2 sales in the construction sector increased by 1.3%, reaching 24.2B New Zealand dollars, demonstrating growth for the first time since 2020, which can support the recovery of the national economy.

The US currency is holding around 101.30 in USDX: investors are wary of forming significant positions amid expectations of today’s publication of August inflation data, which could significantly affect the US Fed’s decision before the monetary policy meeting on September 18. According to preliminary estimates, the consumer price index will be 0.2% MoM and change from 2.9% to 2.5% YoY. If the forecasts come true, the regulator officials may cut the interest rate by more than the traditional 25 basis points.

Support and resistance

The trading instrument is adjusting, trying to consolidate in the downtrend developing after testing the annual high of 0.6260.

Technical indicators are holding the buy signal. The fast EMAs on the Alligator indicator are approaching the signal line, and the AO histogram is forming downward bars above the transition level.

Resistance levels: 0.6175, 0.6260.

Support levels: 0.6124, 0.6050.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.6124, with the target at 0.6050. Stop loss — 0.6170. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 0.6175, with the target at 0.6260. Stop loss — 0.6130.