The USD has been weaker this week due to risk-off sentiment following last week’s strength. This sentiment has been driving the market, despite soft US inflation figures. The market still expects two cuts this year, despite a slightly more hawkish FOMC decision.
The NZD has been pressured by the risk-off sentiment and USD strength, but has been gaining ground as market sentiment improves. Good news for New Zealand as Q1 GDP shows positive growth, taking the economy out of a technical recession.
On the NZDUSD daily chart, we see a bounce near key support at 0.6082, with buyers targeting a rally back to 0.6217 resistance. On the 4-hour chart, price action has been rangebound between 0.6082 support and 0.6217 resistance. Key levels that need to be broken for a sustained trend.
On the 1-hour chart, a strong resistance zone is seen at 0.6145, with buyers looking for a break higher towards 0.6217 and sellers leaning on resistance for a drop back to 0.6082 support.
Upcoming catalysts include US Housing Starts, Building Permits, US Jobless Claims figures today, and US PMIs tomorrow.