NZD/USD Struggles to Recover After Two-Month Low
The New Zealand Dollar has stabilized at around 0.5800 after hitting its lowest point in two months, but remains under pressure due to a recent multi-day decline from 0.5900.
The NZD/USD pair has struggled to regain momentum despite attempting to recover earlier this week, and traders are keeping an eye on several key economic indicators that could influence the currency's performance.
In particular, the upcoming US Consumer Price Index (CPI) reading is expected to have a significant impact on Federal Reserve expectations ahead of next week's meeting. A high CPI print would likely put additional downward pressure on the NZD/USD, while a lower-than-expected result could give the currency some room to recover.
From a technical standpoint, the pair remains below both its 20-period and 100-period Simple Moving Averages (SMAs), with the Relative Strength Index (RSI) hovering in oversold territory near 28. This suggests that downside momentum may be exhausted, but price action is still capped by these overhead averages.