HomeContributorsTechnical AnalysisNZD/USD Analysis: Recovery from 27-Month Low

NZD/USD Analysis: Recovery from 27-Month Low

This morning, New Zealand’s labour market data was released, showing unfavourable results. The unemployment rate rose to 5.1% in Q4, the highest since Q3 2020, signalling economic slowdown and reinforcing expectations of a rate cut by the Reserve Bank of New Zealand at its meeting in late February.

However, the weak labour market figures were widely anticipated and already priced in. A greater source of uncertainty is the ongoing trade war between the US and China, a key trading partner for both Australia and New Zealand.

Donald Trump stated that he is “in no rush” to speak with Xi Jinping after China retaliated against the 10% US tariffs on Chinese imports.

Technical analysis of the NZD/USD chart shows that:

→ The pair remains in a downward trend (marked in red), driven by a strengthening US dollar. The price is currently near the upper boundary of this trend.

→ The 0.555 level acted as support twice in 2025, as indicated by arrows. Notably, the price also reversed upwards from this area in 2022.

It is possible that buyers will gain confidence and attempt to break the upper boundary of the channel. The future trajectory of NZD/USD will largely depend on news related not only to central bank interest rate decisions but also to government actions on tariffs.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen
FXOpenhttps://www.fxopen.com/
FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.

Featured Analysis

Learn Forex Trading