The NZD/USD pair shows signs of recovery following a recent dip influenced by the RBNZ’s decision. The pair has surpassed the key 0.6000 level during the European session, finding support from a weakened USD and dovish Fed expectations. Traders are now focusing on upcoming US macro data and Fed speeches for potential short-term trading opportunities.
After the RBNZ’s surprise rate cut, the USD remains under pressure due to decreasing inflationary pressures, leading to speculations of a Fed rate cut cycle. The positive sentiment in equity markets is supporting the NZD/USD pair, although the RBNZ’s dovish stance and concerns about China’s economic slowdown may limit significant upward movements.
Looking ahead, market participants are anticipating the release of US Retail Sales figures, Initial Jobless Claims, and manufacturing indexes, along with speeches from key FOMC members. These events will shape USD demand and provide direction for the NZD/USD pair in the North American session. Overall market sentiment will also play a role in creating short-term trading opportunities.
Analysis: The NZD/USD pair is recovering from RBNZ’s decision, with USD weakness and positive market sentiment supporting the Kiwi. However, concerns about future rate cuts and economic conditions in China may hinder significant gains. Traders should monitor upcoming US data and Fed speeches for potential market moves.