FxWirePro: NZD/USD erases early losses, US inflation figures and Fedspeak in focus ahead of Wednesday's key RBNZ meeting

NZD/USD chart - Trading View

NZD/USD erases early losses, trades rangebound at 0.6073 at around 06:00 GMT.

Kiwi is extending bounce off intraday low despite downbeat China inflation data.

China's Producer Price Index fell by 3.1%, more than expectations for a 2.6% drop and compared to March's -1.5% reading. 

The Consumer Price Index came in at -0.9%, missing expectations for a 0.5% decline and compared to the preceding month's print of -1.2%. 

The pair finds strong support at 20-DMA and daily cloud, weakness only on break below.

US inflation figures and Fedspeak in focus for short-term moves in the pair ahead of tomorrow’s key RBNZ meeting. 

The RBNZ is expected to keep rates unchanged at 0.25%. The quarterly economic forecasts and tone of policymakers will be important to watch.

Price action is consolidating above daily cloud and is extending grind higher in Rising Wedge pattern.

GMMA shows neutral bias. Volatility is low. Whipsaws around 55-EMA likely to continue until the pair establishes a clear directional bias.

Major Support Levels - 0.6041 (20-DMA), 0.60, 0.5960 (38.2% Fib)

Major Resistance Levels - 0.6097 (55-EMA), 0.6112 (50% Fib), 0.6205 (110-EMA)