The (NZD/USD) pair rose this morning near 0.5925, after rebounding from a low of 0.5894 dollars, in a series of declines that lasted for five consecutive weeks.
The Chinese data led to a decline in the Asian currencies against the US dollar, in light of the fear of a recession that might affect the Chinese economy, in addition to the crisis of the real estate companies, which announced that they would not be able to pay their debts. On the other hand, traders are still not expecting any further rate hikes by the Fed and given the data we have seen in the past few weeks, there is no indication that another rate hike is needed. However, given the strength of the US economy, we have seen much tougher pricing in terms of the interest rate path.
Possibilities show that raising the interest rate by 25 basis points for the month of September is only about 20% currently, and the way is still open for the Fed, especially with the labor market data before the next meeting, which will clearly define the Fed’s direction, and Powell may decide to maintain the status quo in his speech during the Jackson Symposium .
Technically: On the time period (day), we notice that the price rebounded from the descending trend line, which forms support at $0.5894, in addition to returning above the 61.8 Fibonacci retracement area, which indicates that the rebound upwards may continue to the resistance of 0.5940, which, if breached, may continue the rise towards the 50 area. % Fibonacci around the price of 0.6000 USD
