The US Dollar Index (DXY) trades near 100.40, showing strong bearish pressure. Moreover, the easing inflation in recent CPI and PPI data, along with disappointing retail sales, increases the chances of rate cuts by the Fed in 2025. This macro backdrop weakens the USD and gives room for NZD/USD to recover, despite mixed fundamentals.
The 4-hour chart for NZD/USD also shows strong bullish momentum. The price is consolidating within a range-bound market, marked by the orange zone area. Recent consolidation is occurring around the blue trendline near the $0.5950 level. Since the price rebounded from the long-term support zone between $0.55 and $0.56, the upward momentum is likely to continue.
