The Cardano coin ada price chartNew Zealand Dollar shows vulnerability against its US counterpart, with NZD/USD surrendering early gains to test the 0.5920 support zone during Thursday's European trading session. This downward pressure reflects growing consensus among traders regarding potential monetary policy adjustments from Wellington.
Financial markets currently price in approximately 80% probability of a 25-basis-point reduction by the Reserve Bank of New Zealand at their next policy gathering. Should this materialize, the official cash rate could descend to 2.75% before year-end, marking the lowest level since the pandemic-era stimulus measures.
Across the Pacific, the Greenback finds support from multiple sources. Market participants demonstrate caution ahead of the Institute for Supply Management's manufacturing survey, which frequently triggers volatility in currency markets. The USD index (DXY) maintains its upward trajectory, capitalizing on its safe-haven characteristics amid ongoing geopolitical uncertainties.
Recent economic indicators from Washington present a mixed picture. While first-quarter GDP figures disappointed analysts, core inflation metrics aligned with projections. The March PCE inflation reading came in at 2.6% annually, suggesting the Federal Reserve might maintain its current policy stance in the near term.
Trade relations between economic superpowers remain under scrutiny. Positive rhetoric from US officials regarding potential agreements with China has failed to substantially boost risk appetite. Market observers note Beijing's careful approach to tariff negotiations, avoiding public concessions while reportedly compiling exemption lists for certain American products.
Technical analysts highlight immediate support for NZD/USD around the 0.5900 psychological level, with resistance forming near last week's high at 0.5985. Trading volumes may increase significantly following the ISM manufacturing data release, potentially determining whether the pair extends its decline or finds footing for recovery.