The NZD/USD pair hit a new low near 0.6076 as the US Dollar gained strength following hawkish comments from the Federal Reserve. Fed Governor Michelle Bowman expects interest rates to remain steady this year, with a possibility of tightening if inflation does not reach the desired 2% rate. On the other hand, the Reserve Bank of New Zealand is likely to keep its Official Cash Rate at 5.5% for the rest of the year, despite declining inflation.
The breakdown of a Double Top chart pattern in the NZD/USD pair signals a bearish trend, with the 50-period Exponential Moving Average acting as a major resistance. The Relative Strength Index shows bearish momentum, making a pullback towards 0.6100 a selling opportunity. A reversal above 0.6222 could lead to a move towards higher resistance levels.
In economic news, the upcoming Consumer Price Index ex Food & Energy (YoY) data will provide insights into inflationary trends in the US. This data compares prices of goods from the current month to the same month last year, excluding food and energy components for a more accurate measurement. A high reading is positive for the US Dollar, while a low reading is seen as negative.