NZD/USD Struggles Near 0.5900 After Weak GDP Data
The NZD/USD pair is under pressure for the second day in a row as the New Zealand Dollar stays weak after poor economic data.
New Zealand’s economy shrank by 0.9% in the second quarter, much worse than the 0.3% drop experts had expected. This fall comes after a strong 0.8% growth in the first quarter, making the latest numbers a big disappointment for the Kiwi Dollar.
The weak GDP report has raised worries that the Reserve Bank of New Zealand (RBNZ) may soon cut interest rates. If that happens, the Kiwi could remain weak in the forex market, and traders will be watching the central bank’s next steps closely.
On the technical side, NZD/USD is trading near a key support zone around 0.5930–0.5925. If the pair breaks below this area, it could fall further toward 0.5875, 0.5835, and even 0.5800 in the short term.
On the upside, the first resistance is around 0.5960. A strong move above this level could push the pair back toward the 0.6000 mark, which would be a sign of recovery for the Kiwi.
Impact:
NZD/USD might see more weakness if sellers break the 0.5900 support. A bounce could possibly happen if buyers step in near this zone.
