DailyBubble News
DailyBubble News

Bounces back strongly to 0.6100 as US Inflation cools in May

The NZD/USD pair has seen a strong rebound to 0.6100 as the US core PCE Inflation data for May is expected to decline. The annual US core PCE has dropped to 2.6% from 2.8% in April, signaling cooling inflation figures that have increased the likelihood of Fed rate cuts.

The US Dollar has weakened following the release of the PCE inflation report, with the US Dollar Index (DXY) dropping to near 105.80. Meanwhile, the New Zealand Dollar will be influenced by the upcoming Caixin Manufacturing PMI data for June, which is expected to show modest growth.

On the technical side, the NZD/USD pair has broken down from a Double Top chart pattern on a four-hour timeframe, with the 200-period Exponential Moving Average acting as a key resistance level. The Relative Strength Index (RSI) suggests that downside momentum has faded, but a pullback to 0.6100 could present a selling opportunity.

Looking ahead, a move above 0.6222 could signal a reversal with potential targets at 0.6250 and 0.6280. Traders will be closely watching upcoming economic indicators for further direction in the NZD/USD pair.

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