The NZD/USD pair has declined to a new 11-week low, primarily driven by a stronger US Dollar and expectations of further rate cuts by the Reserve Bank of New Zealand (RBNZ).
Key Factors:
- US Dollar Strength: The US Dollar has gained strength following the release of positive US economic data, particularly the better-than-expected Jobless Claims figures.
- RBNZ Rate Cut Expectations: Market participants are anticipating a significant rate cut by the RBNZ in its upcoming meeting, which could further weaken the New Zealand Dollar.
- Global Economic Outlook: Global economic uncertainties and concerns about a potential recession are also impacting the NZD/USD pair.
Technical Analysis:
- Downward Trend: The NZD/USD pair is in a downward trend, with potential for further declines.
- Support Levels: Key support levels for the pair can be identified based on recent price action and technical indicators.
- Resistance Levels: The 0.5950 level is a key resistance level.
