News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
A Bearish Correction Looms After Key Resistance Rejection
Central Bank
Economic
Summary:
This could signal the beginning of a downward correction, with potential downside extending toward the 0.5988 area.
Sell
TradingNZDUSD
EXP
0.60600
Entry Price
0.59900
TP
0.60900
SL
0.60740 +0.00138 +0.23%
0
Point
Flat
0.59900
TP
CLOSING
0.60600
Entry Price
0.60900
SL
The Business NZ Performance of Services Index (PSI) in New Zealand dropped sharply to 44.0 in May, down from April’s 48.1. This marks the lowest reading since June 2024 and signals a fourth consecutive month of contraction, reinforcing concerns over persistent weakness in the country’s service sector.
In Asia, fresh data from China’s National Bureau of Statistics revealed that retail sales rose by 6.4% year-over-year in May, beating both the forecasted 5.0% and April’s 5.1% increase. However, industrial production came in slightly below expectations, climbing 5.8% annually versus the projected 5.9% and the previous month’s 6.1%. The mixed data raised questions about the sustainability of China’s post-pandemic recovery momentum.
Meanwhile, U.S. Commerce Secretary Howard Lutnick announced a tentative framework agreement aimed at lowering tariffs and easing restrictions on rare earth trade. Despite the headlines, market response remained subdued due to the vague details of the agreement and lingering doubts over its long-term effectiveness.
Adding to the cautious mood, concerns over U.S. economic resilience resurfaced following disappointing data from the New York Federal Reserve. The Empire State Manufacturing Index plunged to -16.0 in June from -9.2 in May, significantly missing expectations of -5.5. This marked the weakest print since March’s two-year low of -20.0 and highlighted growing strains in regional factory activity, increasing fears of a broader economic slowdown.
Geopolitical tensions also remained in focus. President Donald Trump reiterated the United States’ strong backing of Israel, stating on Sunday that while he hopes for peace between Israel and Iran, “they’ll have to fight it out.” According to reports, Trump declined an Israeli proposal to target Iran’s Supreme Leader Ayatollah Ali Khamenei, reaffirming his preference to avoid direct U.S. military involvement—at least for now.
On the inflation front, the U.S. Producer Price Index (PPI) for May pointed to further signs of softening price pressures. Headline PPI rose by 2.6% year-over-year, in line with expectations and slightly above April’s 2.5%. However, core PPI—which strips out volatile food and energy components—fell to 3.0% from 3.2%, reinforcing the view that underlying inflation is gradually cooling.
This data followed weaker-than-expected CPI figures earlier in the week, boosting market confidence that the Federal Reserve could move toward a rate cut as soon as September. With inflation slowing and economic growth showing signs of fatigue, expectations for a more dovish monetary policy have risen. In turn, this has supported gold prices, as lower real yields typically benefit the non-yielding metal.
Technical Analysis
On the technical front, NZD/USD appears to have found strong resistance near the 0.6080 level, where the pair has reacted with bearish candlesticks on the one-hour chart. This could signal the beginning of a downward correction, with potential downside extending toward the 0.5988 area. The 100-period and 200-period moving averages are located at 0.6037 and 0.6011, respectively, providing room for a short-term pullback before the pair defines a clearer trend on higher timeframes.
Moreover, the Relative Strength Index (RSI) recently touched 66, approaching the overbought threshold. This suggests that bullish momentum may be weakening. A break below the nearest moving average—specifically the 100-period—could accelerate the downward move toward the next support level. Should price fail to reclaim higher ground, this rejection zone could mark the beginning of a deeper corrective phase.
Trading Recommendations
Trading direction: Sell
Entry price: 0.6060
Target price: 0.5990
Stop loss: 0.6090
Validity: Jun 20, 2025 15:00:00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.