NZD/USD Rebounds Toward 20-Day EMA Around 0.6035
The NZD/USD currency pair bounced back on Tuesday after four straight days of losses. It moved up near 0.6035, just below the 20-day Exponential Moving Average (EMA). This recovery came as the US Dollar lost some strength after reaching a weekly high.
The dollar weakened after tariff news from the US. President Trump announced new 25% tariffs on countries like Japan and South Korea, but delayed the start date to August 1. This gave traders hope that trade talks might cool down tensions, which put pressure on the dollar.
Now, all eyes are on the Reserve Bank of New Zealand (RBNZ). The bank is expected to keep its interest rate steady at 3.25% in the upcoming policy decision. This steady policy could support the New Zealand dollar, at least in the short term.
On the technical side, NZD/USD is struggling to rise above the 20-day EMA. A double top pattern around 0.6090 is showing signs of resistance. Also, the RSI (Relative Strength Index) is stuck between 40 and 60, which suggests a sideways trend without a clear breakout for now.
Impact:
If RBNZ sticks to its current rate and US tariff worries grow, NZD/USD could gain more. But any sign of RBNZ easing or a strong USD might lead to a pullback.