For half of 2023, NZD lost about 5% against USD. The New Zealand dollar, being a commodity risky asset, is most exposed to pressure against the backdrop of problems in the global economy. Certainly, we will no longer see such a fall as in 2022, as the rally in interest rates is in the past. Nevertheless, tightening of monetary policy still remains a driver for the US currency despite weak macroeconomic indicators.
This week, the New Zealand dollar has strengthened against the USD. So far, everything looks like a local price correction, which ends this week. The impetus for correction was strong macroeconomic reports in New Zealand. It became known about the growth of the consumer sentiment index, and the trade balance deficit turned out to be lower than forecasted in May.
Volatility will remain moderate next week. Only a few minor events are expected, such as the publication of the business confidence index in New Zealand, as well as consumer sentiment and the number of orders for durable goods in the US. We believe that the downward trend in favor of the USD will continue. The US currency will receive support over the next few months on speculation regarding the interest rate and its increase. Stochastic oscillator, as well as other technical analysis tools, indicate the effectiveness of trend-following trades. Today we are opening new deals to Sell by investing in USD. New trades with this currency pair can be opened with a Superforex trading account by investing only $1, and the broker will gladly provide an additional $30 bonus to open the maximum number of trades. https://superforex.com/easy-deposit-bonus
