NZD/USD Price Analysis: Kiwi prods immediate resistance below 0.6100 on upbeat RBNZ Inflation Expectations
- NZD/USD recovers from the lower level in two months but lack follow-through.
- RBNZ Inflation Expectations for Q3 improves to 2.83% QoQ versus 2.79% prior.
- Impending bull cross on MACD, gradually improving RSI favor corrective bounce but multiple hurdle check Kiwi bulls.
NZD/USD grinds near intraday high below 0.6100, close to 0.6080 by the press time, as snaps a two-day losing streak while bouncing off the lowest level in two months ahead of Wednesday’s European session. In doing so, the Kiwi pair justifies upbeat prints of the Reserve Bank of New Zealand (RBNZ) Inflation Expectations for the third quarter (Q3) of 2023 amid the US Dollar’s pullback.
Also read: RBNZ Survey: NZ inflation expectations rise to 2.83% in Q3 2023
That said, RBNZ Inflation Expectations improved to 2.83% QoQ for Q3 2023 from 2.79% previous reading, favoring hopes of witnessing a rate hike from New Zealand’s central bank.
The same joins the market’s positioning for the US inflation data and the recent risk-positive headlines about China, to help the NZD/USD poke a one-week-old descending resistance line, around 0.6085 by the press time.
It’s worth noting that the looming bull cross on the MACD and the latest improvement in the RSI (14) line underpin expectations of crossing the 0.6085 immediate hurdle, which in turn could lead the bulls toward the downward-sloping resistance line from mid-July, close to 0.6125 at the latest.
Even so, the NZD/USD bulls remain cautious unless witnessing a successful break of the 10-week-long previous support line surrounding 0.6145.
On the contrary, an area comprising multiple levels marked since May 30, close to 0.6030, quickly followed by May’s bottom of 0.5985, can lure the NZD/USD bears during the pair’s further downside.
NZD/USD: Four-hour chart
Trend: Limited recovery expected