NZDUSD falls to a key support ahead of the US NFP report: What's next?

NZDUSD Testing Key Support Ahead of US NFP

NZDUSD has reached a significant support level at 0.5740 as traders await the US Non-Farm Payroll (NFP) report. This level has historically shown strong support, and the market is anxious as the US dollar remains volatile. Mixed US economic data has contributed to cautious trading environments, with some metrics signaling weakness while others are more robust. The Reserve Bank of New Zealand (RBNZ) has maintained the OCR at 2.25%, signaling the end of the easing cycle and reinforcing expectations it would remain stable through 2026. This has boosted confidence in the New Zealand dollar., however, a lack of fresh economic reports leaves the NZD outlook neutral.

Technical Analysis

On the daily chart, NZDUSD rally post-RBNZ meeting hit resistance around 0.5850, and there's currently a consolidation phase as traders await new catalysts. The strong support zone at 0.5740 limits downside risk, with sellers looking for a break below this level to target 0.5500. Conversely, buyers aim to defend this support level and push towards the resistance at 0.5850.

Conclusion

Upcoming U.S. Jobless Claims figures and the NFP report may significantly impact market sentiment, urging traders to closely monitor the support level of NZDUSD and the subsequent reactions.