NZD/USD in Peril as Thursday's GDP Data Tests Kiwi Strength

The New Zealand dollar (NZD) is bracing for Thursday's GDP data release, which could have significant implications for its value against the US dollar (USD). In recent trading, NZD/USD has been in a downward trend, breaking below key support levels and closing at 0.57106 on Tuesday, down from an early September high of 0.5987.

The pair's decline is attributed to the breakdown of a rising trendline off the June low and the loss of the August consolidation shelf around $0.5854 to $0.5865, which had previously held as support. The hourly chart suggests that sellers have maintained control since the trendline gave way.

With the Reserve Bank of New Zealand (RBNZ) also considering its next rate hike, the GDP data release will be closely watched for clues on the central bank's monetary policy decisions. A strong GDP reading could reinforce expectations of a rate hike and put additional downward pressure on NZD/USD.