• NZD/USD takes offers to renew weekly low, extends the previous day’s pullback from five-week high.
• RBNZ Inflation Expectations slump to 2.79% QoQ for Q2 2023 versus 3.30% prior.
• Downside break of 12-day-old ascending trend line, 50-SMA favors sellers.
• 200-SMA, nearly oversold RSI (14) line can prod the Kiwi pair bears.

NZD/USD stands on slippery grounds as it takes offers to extend the previous day’s U-turn from the monthly high to renew the weekly low around 0.6260 during early Friday. In doing so, the Kiwi pair justifies disappointing inflation clues from amid broad US Dollar strength to break the short-term key technical supports.

Reserve Bank of New Zealand’s (RBNZ) Inflation Expectations for the second quarter (Q2) of 2023 dropped to the lowest levels since the Q3 of 2021 while falling to 2.79% versus 3.30% previous readings. Earlier in the day, New Zealand’s Business NZ PMI for April dropped to 49.1 versus 50.7 expected and 48.1 prior whereas Visitor Arrivals eased to 805% in March versus prior growth of 4,998%.

With this, the Kiwi pair broke an upward-sloping trend line from late April and the 50-SMA, respectively near 0.6300 and 0.6290.

Apart from the NZ data and downside break of the technical supports, the bearish MACD signals also favor the NZD/USD sellers to renew the weekly low near 0.6260.

However, the nearly oversold RSI conditions highlight the 200-SMA level of around 0.6230 as short-term key support to watch for the Kiwi pair bears.

Should the quote fails to respect the 0.6230 support, the 0.6200 round figure and the late April swing high around 0.6190 will be in the spotlight.

On the contrary, the 50-SMA and the previous support line, near 0.6290 and 0.6300 in that order, guard immediate recovery moves of the NZD/USD pair.

Following that, a one-month-old horizontal resistance area near 0.6315 and double tops marked near 0.6385 appear crucial to watch for the NZD/USD bulls.

NZD/USD: Four-hour chart

Trend: Limited downside expected