NZD/USD Slips Amid Upbeat U.S Retail Sales.

Fundamental Analysis

* Retail Resurgence: The New Zealand Kiwi remains under pressure against the U.S. dollar as stronger-than-expected U.S. Retail Sales data lend support to the greenback. According to the U.S. Census Bureau, Retail Sales in the U.S. rose 0.7% MoM in November, exceeding the market forecast of 0.5% and up from a revised 0.4% in the previous month. Meanwhile, the Kiwi faces additional headwinds from potential trade tensions, with Donald Trump announcing plans to impose a 10% tariff on imports from China. Adding to the strain, Chinese Retail Sales fell short of expectations in November, intensifying challenges for policymakers after President Xi Jinping recently emphasized the need to boost household consumption. The economic uncertainty in China, a key trading partner for New Zealand, further weighs on the Kiwi.

Technical Analysis

* Technical Breakout: NZDUSD was traded lower following prior breakout below the previous support level 0.57750. MACD which illustrate diminishing bullish bias signal suggest the pair to likely further extend its losses.

* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.56700. Conversely, a potential reversal is also to be expected and the price could head back towards 0.58750 after it breach back above the level 0.57750.

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Potential Risks

Looking ahead, the market spotlight will be on this week’s interest rate decisions from the Fed. Additionally, crucial U.S. data such as Core PCE Price Index, will be closely monitored by the market.

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Monitoring

Stay updated on US and New Zealand data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.