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The New Zealand Dollar bounces on Thursday after finding a floor at the key 50-day SMA. The Kiwi recovers after three days of losses and despite a worsening macro backdrop – normally a negative for NZD.  NZD/USD remains in a long-term downtrend, with US labor data and commentary from Fed’s Powell as potential near-term influences.  The New Zealand Dollar (NZD) recovers against the US Dollar (USD) on Thursday, despite a worsening macro picture after bouncing off technical support at the important 50-day Simple Moving Average (SMA). The 50-day SMA is used as a key guide to investing by institutional investors, such as pension fund managers, and retail traders alike.  Daily digest market movers: New Zealand Dollar strengthens after meeting key average The New Zealand Dollar trades higher against the US Dollar on Thursday despite the USD strengthening against most counterparts as reflected by the rise in the US Dollar Index (DXY).  Downbeat Chinese inflation data continues to dampen the outlook for global growth. This would normally weigh on NZD, as it is a major commodity exporter – especially of dairy products – to China. However, the currency ignores the data and rises anyway. The Kiwi’s unilateral strength is probably as a result of the NZD/USD reaching a significant chart level, the 50-day SMA, and then bouncing.  The Chinese CPI unexpectedly declined by 0.2% October compared with the same month a year earlier, versus the 0.0% in the previous month. Experts had expected a 0.1% fall.  Deflation in China suggests signs the economy is cooling. Normally this would have a negative knock-on effect on NZD.  The Kiwi itself weakened on the back of an inflation report from the RBNZ on Wednesday. The report showed both one-year-out and two-years-out inflation expectations for New Zealand fell in Q3 compared to the previous quarter.…

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Filed under: News - @ November 9, 2023 3:24 pm