Forex Market: NZD/USD daily forecast

During yesterday’s trading session NZD/USD traded within the range of 0.8606-0.8682 and closed at 0.8667.

At 11:12 GMT today NZD/USD was gaining 0.16% for the day to trade at 0.8688. The pair breached the first key resistance and touched a daily high at 0.8708 at 1:45 GMT.

Fundamental view

United States

At 18:00 GMT the Federal Open Market Committee (FOMC) will release the minutes from its meeting on policy held on March 18th-19th. The minutes offer detailed insights on FOMCs monetary policy stance. This release is closely examined by traders, as it may provide clues over interest rate decisions in the future. High volatility is usually present after the publication.

At 19:30 GMT Fed President for Chicago Charles Evans is expected to take a statement. He was a FOMC voting member in September – December 2007, 2009 and 2011. Statements by FOMC members attract investors attention, as they may offer clues over the possible direction of monetary policy in the future. Evanss remarks may indicate a positive or negative trend in a short term.

New Zealand

At 22:30 GMT Business NZ is expected to announce the results from its survey in March, that encompasses purchasing managers in New Zealands manufacturing sector. The corresponding PMI came in at a reading of 56.2 in February. This compound index provides clues over how resilient activity in nations manufacturing is. Values above the key level of 50.0 are indicative of expanding activity in the sector. Higher activity usually implies potential economic growth and accelerating rate of inflation. Higher readings of the PMI would support New Zealand dollar.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/USD manages to breach the first resistance level at 0.8697, it will probably continue up to test 0.8728. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8773.

If NZD/USD manages to breach the first key support at 0.8621, it will probably continue to slide and test 0.8576. With this second key support broken, the movement to the downside will probably continue to 0.8545.