The New Zealand dollar pared some of its losses on Tuesday, returning to levels above 0.5800 at the time of writing, but recovery attempts appear tenuous so far. Technical indicators remain neutral to bearish, and rising geopolitical tensions in Asia are not particularly supportive.
China is holding military exercises around the island of Taiwan, including real missile launch exercises, in response to an agreement with the United States to send an $11 billion arms package to Taipei. Taiwan announced the deployment of its missile systems.
Rising tensions in a sensitive region have already affected Asian stock markets, which were suffering moderate losses at the time of writing, and are likely to keep the risk-sensitive New Zealand dollar under pressure.
Technical analysis. Support 0.5790 remains in place
On the 4-hour chart, the NZD/USD pair is trading at 0.5814, with little change on a daily basis. Price action remains above trend line support from the mid-November lows, highlighting the broader uptrend, but technical indicators point to fading momentum.
The Relative Strength Index (RSI) has rebounded from the 40 level but is still below the 50 key indicator
The Moving Average Convergence-Divergence (MACD) remains below zero.
Immediate support is at the 0.5790 area, where trend line support meets Monday’s low. In the event of further decline, the December 19 low at 0.5735 will come into focus, ahead of the 61.8% Fibonacci retracement of the November-December high and the mid-November highs, at 0.5690.
On the upside, resistance around 0.5855 capped gains on October 6 and December 24. Furthermore, the 1.27.2% and 161.8% Fibonacci extensions of the December 19-24 high lie at 0.5885 and 0.5925, respectively.
(Technical analysis of this story was written with the help of an artificial intelligence tool)
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was the strongest against the euro.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.03% | -0.08% | -0.11% | -0.04% | -0.18% | -0.12% | -0.04% | |
| euro | 0.03% | -0.05% | -0.11% | -0.02% | -0.16% | -0.10% | -0.02% | |
| GBP | 0.08% | 0.05% | -0.04% | 0.03% | -0.12% | -0.05% | 0.01% | |
| JPY | 0.11% | 0.11% | 0.04% | 0.07% | -0.07% | -0.02% | 0.11% | |
| Canadian | 0.04% | 0.02% | -0.03% | -0.07% | -0.13% | -0.05% | -0.01% | |
| Australian dollar | 0.18% | 0.16% | 0.12% | 0.07% | 0.13% | 0.07% | 0.13% | |
| New Zealand dollar | 0.12% | 0.10% | 0.05% | 0.02% | 0.05% | -0.07% | 0.07% | |
| Swiss franc | 0.04% | 0.02% | -0.01% | -0.11% | 0.01% | -0.13% | -0.07% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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