The New Zealand Dollar (NZD) struggles to gain traction against the US Dollar (USD) on Wednesday, hovering around the key psychological level of 0.6000.
- Risk Aversion and Hawkish Fed Comments Weigh on NZD: A cautious market sentiment and hawkish remarks from Minneapolis Fed President Kashkari bolster the USD, putting downward pressure on the NZD.
- RBNZ Rate Cut Expectations: The possibility of the Reserve Bank of New Zealand (RBNZ) shifting to interest rate cuts later this year weighs on the NZD.
- Technical Outlook: Mixed Signals
- Despite recent gains, the NZD/USD faces resistance at 0.6000.
- A successful break above this level could signal a bullish reversal, potentially targeting 0.6050 and 0.6100.
- The RSI hovering near 50 indicates neutral momentum.
- A breakdown below 0.5860 could trigger further losses towards 0.5847 and 0.5900.
The NZD’s near-term direction hinges on the broader market risk sentiment, the US Dollar’s strength, and future RBNZ policy decisions.
