NZD/USD Rebounds Amid Weaker US Dollar and Softer Inflation
NZD/USD extended its rebound for a second session, recovering from the 0.5575 area and lifting to around 0.5655–0.5660 in early European trade, as the US Dollar weakened. The Dollar Index (DXY) fell to its lowest level since late September, with markets weighing post-election developments and the prospect of fiscal gridlock that could restrain government spending and slow growth. Softer crude oil prices have also eased inflation concerns, which in turn has pressured US bond yields and kept the Greenback on the back foot.
RBNZ Policy, US Data Events, and Technical Outlook
The Kiwi’s upside has been limited by the Reserve Bank of New Zealand’s dovish decision last week to leave the Official Cash Rate unchanged at 2.75%, while attention turns to Friday’s US Nonfarm Payrolls (NFP) report. Technically, the pair remains capped around the 100-period SMA near 0.5649 on the four-hour chart; RSI (14) has cooled to about 55, and the MACD histogram is marginally positive but flat. Support sits at 0.5580–0.5570, while resistance layers include 0.5664 (23.6% Fibonacci), then 0.5725 (38.2%) and 0.5775 (50%).
