Nzdusd consolidates as economic indicators send mixed signals

NZDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.05%	2.9 Pips
Week to-date	0.69%	42 Pips
July	0.11%	6.7 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, the Job Openings and Labor Turnover Survey (JOLTS) for May 2025 indicated a notable increase in job openings, reaching 7.769 million from a revised 7.395 million in April. This increase suggests a strengthening labor market, implying that businesses are actively seeking to hire more employees. The growth in job openings reflects robust economic activity and could potentially lead to wage growth as employers compete to attract talent.

In New Zealand, building consents for new dwellings rose by a seasonally adjusted 10.4% in May 2025, rebounding from a revised decline of -14.6% in April. The significant increase in building consents suggests a strong demand in the housing sector, potentially driven by population growth or favorable economic conditions. This surge is a positive indicator for the construction industry, which may lead to increased economic activity and employment in related sectors.

Furthermore, the New Zealand Institute of Economic Research (NZIER) reported an increase in business confidence for the second quarter of 2025. Business confidence climbed to 22% from 19% in the first quarter. An improvement in business confidence is a sign of optimism among firms about the future economic outlook, which can encourage investment and expansion activities, subsequently contributing to economic growth.

The NZDUSD currency pair experienced a slight rise of 0.05%, closing at 0.60942. The developments in both the U.S. and New Zealand economies present mixed signals for the NZDUSD pair. The increase in U.S. job openings could bolster the U.S. dollar due to expectations of a tighter labor market leading to inflationary pressures, potentially prompting the Federal Reserve to consider further monetary tightening. Conversely, the improvements in New Zealand’s building consents and business confidence are favorable for the New Zealand dollar, suggesting economic strength. As a result, the NZDUSD pair remains in consolidation, with market participants likely awaiting additional economic data, such as the upcoming U.S. Nonfarm Payroll Employment report, to determine the next directional move of the currency pair.

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What can we expect from NZDUSD today?

NZDUSD on Tuesday rose 0.05% to 0.60942. Price is above 9-Day EMA while Stochastic is falling in overbought zone.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.60726 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.61201 or trades above daily pivot 0.60964. Break above could target R1 at 0.61179. While to the downside, we are looking at 0.60726 (S1) and daily low of 0.60748 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.61201 may suggest continuation after recent positive movement.

For the week to-date, take note that NZDUSD is bullish as the pair continued to trade higher and is up by 0.69% over the past few days.

Key levels to watch out: