The NZD/USD pair has initiated a modest recovery from multi-year lows below the 0.5500 level, reached following the Reserve Bank of New Zealand’s (RBNZ) policy announcement. This intraday rebound, however, demonstrates limited momentum, with the pair currently trading near 0.5535-0.5540. Persistent concerns regarding the US-China trade relations and potential global economic repercussions from US tariffs continue to dampen investor sentiment, thereby limiting gains for the risk-sensitive New Zealand Dollar (NZD). Conversely, the US Dollar (USD) is experiencing selling pressure amid increased expectations of multiple interest rate reductions by the Federal Reserve (Fed), providing some support to the NZD/USD. From a technical standpoint, the recent breach of the 0.5575-0.5580 support level is considered a bearish indicator. Furthermore, daily chart oscillators remain firmly in negative territory, suggesting continued downward pressure on the NZD/USD and potential selling opportunities during any upward price movements near the former support level.
