Should we keep an eye on the downside potential for the NZD/USD pair, which has fallen by about 160 pips?

Should we keep an eye on the downside potential for the NZD/USD pair, which has fallen by about 160 pips?

25.05.2023

In yesterday’s U.S. trading session, the U.S. dollar emerged as the strongest currency and gained ground against the New Zealand dollar, which was the weakest. The NZD/USD pair fell by approximately 160 pips from 0.6255 to 0.6093.The downward trend continued during today’s Asian session, with the pair touching 0.6076 and setting a new low for the year. The New Zealand dollar plummeted following yesterday’s announcement that interest rate hikes would be paused, but we need to remain vigilant as to whether the NZD/USD pair will continue to decline toward the 50% Fibonacci retracement level on the weekly chart, around 0.6036.

European currencies saw the pound rise against the yen after the UK’s April Consumer Price Index (CPI), released yesterday, came in at 8.7%, exceeding market expectations of 8.2%. The GBP/JPY pair rose from 171.893 to 172.789. However, it subsequently traded sideways.During today’s Asian trading session, the pair is trading around 172.400 with an upward bias, so it will be worth watching whether the pound extends its gains into the European session.

Today’s schedule includes Germany’s Q1 GDP and GfK Consumer Confidence Index at 3:00 PM; the TCMB policy rate and statement release in Turkey at 8:00 PM; U.S. initial jobless claims, Q1 GDP, and the GDP core deflator at 9:30 PM; and remarks by U.S. Federal Reserve Bank of Richmond President Barkin at 10:50 PM:Richmond Fed President remarks, at 11:00 PM: U.S. Existing Home Sales, at 11:00 PM: U.S. Weekly Natural Gas Inventories, U.S. Collins: Boston Fed President remarks, at 12:00 AM: U.S. Kansas City Fed Manufacturing Index, and at 2:00 AM: U.S. 7-Year Treasury Auction.We will closely monitor the downside potential for the NZD/USD pair, which has fallen by approximately 160 pips.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran