• NZD/USD remains pressured around five-week low, keeps NZ inflation-induced fall.
• New Zealand Q1 CPI eases to the lowest level in two years with 6.7% QoQ figures.
• Downside break of one-month-old horizontal support, bearish MACD signals also keep Kiwi pair sellers hopeful.
• Any recovery remains elusive below 200-SMA, 0.6170 guards immediate upside.

NZD/USD bears keep the reins at the lowest levels in five weeks while defending New Zealand (NZ) inflation-inflicted losses around 0.6160 during the mid-Asian session on Thursday. With this, the Kiwi pair not only justifies the downbeat NZ inflation but also the recent break of one-month-old horizontal support, now immediate resistance, as well as the bearish MACD signals.

New Zealand’s (NZ) first quarter (Q1) inflation, per the Consumer Price Index (CPI), poured cold water on the face of the policy hawks at the Reserve Bank of New Zealand (RBNZ) by offering a negative surprise. That said, the NZ CPI drops to 1.2% QoQ versus the expected 1.7% and 1.4% prior.

Following the data disappointment, the Kiwi pair broke one-month-old horizontal support, now adjacent hurdle around 0.6170, which in turn joins the bearish MACD signals to direct NZD/USD bears towards a 1.5-month-old horizontal support zone near 0.6140.

Should the NZD/USD bears remain dominant past 0.6140, the odds of witnessing a fresh 2023 low, currently around 0.6085, can’t be ruled out.

Meanwhile, recovery moves can’t be appreciated on an uptick beyond the 0.6170 support-turned-resistance as the 200-SMA hurdle of 0.6220 becomes crucial for NZD/USD buyer’s return.

In a case where the NZD/USD pair remains firmer past 0.6220, the quote’s run-up towards the previous weekly high of around 0.6315 and then to the monthly peak of 0.6386 can’t be ruled out.

NZD/USD: Four-hour chart

Trend: Further downside expected