The NZD/USD pair continues to rise, reaching 0.5960 as the US Dollar weakens ahead of the release of US Q1 GDP data. Analysts predict that the US economy grew by 2.5% in the January-March period. The New Zealand Dollar is benefiting from increased demand for riskier currencies.
The US Dollar’s decline is partly due to concerns about the US economic outlook following a sharp drop in new business inflows in April. The US Dollar Index (DXY) has fallen to a 10-day low near 105.50.
Investors are eagerly awaiting the release of the US Q1 GDP data, as well as the US core Personal Consumption Expenditure Price Index (PCE) data for March. The inflation measures are expected to influence speculation about potential Federal Reserve rate cuts.
The NZD/USD pair is currently in an inventory adjustment phase, with the Kiwi asset expected to make a decisive move following the US Q1 GDP data release. Technical indicators suggest a bullish near-term outlook for the New Zealand Dollar.
If the pair breaks above the psychological resistance of 0.6000, it could move towards the April 4 high around 0.6050 and the round-level resistance of 0.6100. On the other hand, a break below the April 16 low at 0.5860 could lead to a downward trend towards the round-level support of 0.5900.
Overall, the NZD/USD pair is showing signs of strength, with potential for further gains in the near future.