NZD/USD was steady early in the week, trading around 0.5660 and retaining a near-term bullish bias after firmer Chinese releases countered weaker New Zealand trade data. China’s GDP expanded 4.5% in Q3, up from 4.3% in Q2 and above the 4.4% forecast, while September Retail Sales rose 1.1%, easing concerns over domestic demand.
New Zealand Data and US Dollar Trends
In New Zealand, the September trade deficit widened to NZD 1.97 billion from NZD 1.54 billion in August, and the Business PSI eased to 50.9 from a downwardly revised 51. In the US, the Dollar extended its softer tone as inflation stayed above the Federal Reserve’s target and policymakers signalled a wait-and-see stance after September’s rate hike ahead of the October 29-29 meeting.
Technical Analysis
Technically, NZD/USD has consolidated above 0.5630-0.5640, with RSI in the low 60s and MACD positive; resistance includes 0.5660 and the 0.5750 area, while a break below 1.5130 would expose 0.5590 and 0.5565.
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