New Zealand Kiwi Rose As China Unveils Stimulus Measure

Fundamental Analysis

*Fresh Stimulus: The New Zealand dollar strengthened against the U.S. dollar after announcements of fresh stimulus measures from both China and New Zealand. On Thursday, Chinese authorities unveiled initiatives to stabilize their stock markets, including permitting pension funds to boost investments in domestic equities. Officials also revealed plans for state-owned insurance companies to inject hundreds of billions of Yuan into A-shares annually, emphasizing that major state-owned insurers still have capacity to expand their capital market investments. Meanwhile, New Zealand Prime Minister Christopher Luxon announced plans to relax foreign investment regulations to attract and support international investors in the country.

Technical Analysis

*Technical Breakout: NZDUSD was traded higher following prior breakout above the previous resistance level 0.56700. MACD which illustrate diminishing bearish momentum signal suggest the pair to likely extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.57500. Conversely, a potential reversal is also to be expected and the price could head back towards 0.55850 after it breach back below the level 0.56700.

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Potential Risks

Looking ahead, market attention is likely to continue to center on Donald Trump’s policy updates, as traders assess their potential impact on the global economy. On the economic front, the calendar is relatively light, but U.S. data such as S&P Global PMI figures and Existing Home Sales will still draw focus.

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Monitoring

Stay updated on US and New Zealand data, Trump updates, global market updates, 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.