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NZD/USD Stalls as US Dollar Rebounds

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.