The pair tests key support after two days of losses amid fading risk appetite and stronger USD demand ahead of US CPI data.
The New Zealand Dollar weakens against the US Dollar for a second session, trading near the 0.5850 support level as market confidence wanes. Rising oil prices and uncertainty over US-Iran negotiations have dampened risk appetite, while hawkish Fed comments lifted the USD despite weak US jobs data.
NZD/USD remains within its two-week range but shows fading bullish momentum, with technical indicators signaling potential downside. The 14-period RSI hovers near 59, while the MACD histogram narrows, suggesting bulls are losing control. Investors await Wednesday’s US CPI report for clues on the Fed’s rate path.
FX volatility stays muted as traders weigh the likelihood of a September Fed rate cut. The pair’s next move may hinge on inflation data and broader risk trends.