FXOpen
As shown on the NZD/USD chart today, the exchange rate is around 0.58250—the highest level for the Kiwi against the US dollar since December 2024.
NZD strength is supported by optimism about China's economy, a key trading partner for New Zealand. The Hang Seng Index (Hong Kong 50 on FXOpen) is near three-year highs, driven by:
→ Optimism surrounding AI development in China, including models from DeepSeek and Alibaba.
→ Government stimulus measures boosting the Chinese economy.
Meanwhile, traders are assessing the USD's outlook in light of the Trump administration's trade tariff policies.
Technical Analysis of NZD/USD
The recent rally accelerated after bulls broke through the downward trendline (shown in orange). However, bears may expect a correction due to three key factors:
→ The price is near the 0.58000 level, which previously acted as support (as indicated by arrows). It may now serve as resistance, limiting further gains.
→ The RSI indicator is in overbought territory, unsurprising given the rally's pace over the past week.
→ The price is near the upper boundary of the ascending channel (in place since early 2025), which could also act as resistance to further upside.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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