NZD/USD, AUD/USD and USD/CNH Forecasts – US Dollar on the Move

NZD/USD Technical Analysis

The New Zealand dollar has drifted lower during the trading session here on Thursday morning, but it looks as if we are struggling a little bit to break to a fresh low from a couple of days ago.

If we do in fact continue to go lower from here, the 0.57 level would more likely than not be the next target. Any rally at this point in time will continue to see resistance at the 0.5850 level.

AUD/USD Technical Analysis

The Australian dollar continues to be very sideways at this juncture in the session, but it has been selling off for several days in a row. I think this is a situation where dropping interest rates in America could help the Australian dollar, but perhaps even more importantly, we have traders starting to bet on the idea that the Reserve Bank of Australia may have to cut rates with some pretty dismal domestic numbers.

I suspect we probably continue to see support near the 0.6950 level, especially with the 200-day EMA racing towards it and the fact that we have market memory there anyway.

USD/CNH Technical Analysis

The US dollar has been slightly negative against the Chinese yuan during the session, but it’s been a beautiful downtrend since December. Now that we find ourselves at the 6.77 level, we have to ask questions about 6.75.

Short-term rallies should see trouble right around the 6.80 level and the 50-day EMA. Keep in mind this is a tightly managed currency and therefore the moves tend to be very, very subtle and more of a grind. As things stand right now, we are most certainly grinding lower.

From a longer-term standpoint, it is worth watching that 6.75 level. It was resistance going back to the summer of 2022, so we’ll see if any market memory comes into play to keep it at least sideways for a while.

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