The NZD/USD is stabilized while the dollar goes back through the weak inflation and politics concerns

• The pair quotes near the 0.5900 zone after cutting intradic losses in the middle of mixed technical signals.
• The weak inflation in the US and speculation about a weak dollar policy weighs on the US dollar.
• Support at 0.5884; Resistance seen in 0.5908 and 0.5928 with the technicians pointing to a possible rebound.

The NZD/USD is floating near the level of 0.5900 after giving previous profits in the trade on Wednesday. The pair remains under moderate pressure but shows signs of stabilization as the price action is consolidated near the lower end of the daily range. Kiwi’s content performance occurs while the US dollar fights in general, pressed for new speculation about a deliberate weakening strategy of the US dollar and signs of an inflation trend in cooling.

The market approach remains in the broader narrative that the Trump administration could be supporting a weaker USD as part of its commercial reorientation impulse. The conversations between US officials and South Korea on foreign exchange policy have triggered a USD sales wave in Asia, adding pressure on the dollar. The recent drop in the Consumer Price Index (CPI) of the United States to 2.3% year -on -year, the lowest since February 2021, has also amplified the expectations of rate cuts. Although Fed is expected to maintain its position in the short term, swap markets are still valuing 75 basic relief points during the next year, below 125 bp last week.

Meanwhile, New Zealand economic perspectives remain clouded by the expectations of a moderate change in the New Zealand Bank Reserve (RBNZ). Analysts widely anticipate that the RBNZ will reduce the official cash (OCR) rate at its next policy meeting, citing weaker internal growth perspectives. Without important New Zealand data this week, the NZD price action is mainly driven by external developments, particularly the change of feeling around the US dollar.

Technical analysis

Technically, the NZD/USD torque is quoting near its minimum daily about 0.5896, within a broader range between 0.5884 and 0.5969. The relative force index (RSI) is in neutral territory in the 50s, while the convergence/divergence indicator of mobile socks (MACD) remains in negative territory, pointing out a downward impulse. However, the Bull Bear Power is tending close to the zero line, hinting underlying purchase conditions. The Stochastic Relative Force Index (RSI stock) – rapid also reflects a neutral posture. While the single mobile average (SMA) of 20 days points to a continuation of the bassist feeling, both the simple mobile socks (SMA) of 100 days and of 200 days are aligned with a bullish bias, supported by the 30 -day exponential mobile average (EMA) and the 30 -day SMA too. Immediate support levels are observed at 0.5884, 0.5885 and 0.5885, while the resistance is found at 0.5908, 0.5920 and 0.5928. With several long -term technical indicators pointing out bullish potential and the par quoting in a key support area, the NZD/USD maintains a slightly bullish bias, provided that the general weakness of the USD continues.