The New Zealand Dollar (NZD) saw limited gains after inflation data missed expectations. The chart below shows that New Zealand’s annual inflation rose to 2.7% in Q2 2025, from 2.5% previously.
Moreover, the quarter-on-quarter CPI rose 0.5%, slowing from 0.9% in Q1 and missing the forecast of 0.6%.
These numbers reduce pressure on the Reserve Bank of New Zealand (RBNZ) to raise rates, which has capped the upside of NZD/USD. The pair struggled to break above key resistance levels.
In summary, AUD/USD and NZD/USD traded with caution amid mixed global cues. Trade optimism and a weaker dollar provided support. However, China’s inaction on stimulus, combined with soft inflation data from New Zealand, limited momentum.
The 4-hour chart for NZD/USD shows that the pair is trading within a descending channel and consolidating above the 0.5850 level. A breakout above the channel would likely initiate a move toward 0.61. The consolidation above 0.5850 indicates bullish price action and suggests potential upside momentum.
