• NZD/USD trades muted near 0.5680 ahead of Wednesday’s RBNZ decision.
• Softer US ADP data points to cooling private hiring momentum.
• RBNZ expected to hike 25 bps after May’s close split.

NZD/USD loses ground near the 0.5680 level as investors look ahead to Wednesday’s Reserve Bank of New Zealand (RBNZ) policy decision, while the US Dollar (USD) remains supported by cautious remarks from the Federal Reserve (Fed).

The latest US labor data showed the ADP Employment Change 4-week average eased to 21K from 24.25K, pointing to softer private hiring. However, the Greenback held firm after New York Fed President John Williams said the US economy is growing at a steady pace, the labor market remains stable, and inflation is still elevated.

In New Zealand, the RBNZ is widely expected to raise the Official Cash Rate (OCR) by 25 basis points, from 2.25% to 2.50%, ending a three-meeting pause. The decision could bring volatility, as economists remain divided after May’s close 3-3 split, when Governor Breman cast the deciding vote to hold rates steady.

Short-term technical analysis:

On the 4-hour chart, NZD/USD trades at 0.5675, holding below both the 20-period Simple Moving Average (SMA) at 0.5697 and the 100-period SMA at 0.5707, keeping the near-term bias bearish despite the pair stabilizing just off intraday lows. The Relative Strength Index (RSI) at 42.8 slips below the midline, hinting at waning upside momentum and reinforcing the idea that rallies are likely to face selling pressure beneath the clustered moving-average resistance.

On the topside, immediate resistance is located at the horizontal barrier near 0.5688, followed by a tight cluster between 0.5693 and 0.5699, just ahead of the 20-period SMA at 0.5697 and the 100-period SMA at 0.5707, which together define a broader cap on recovery attempts before 0.5907 and 0.5930. On the downside, initial support emerges at 0.5672, where a break would expose fresh lows and leave the pair searching for a new floor below the recent consolidation base.

(The technical analysis of this story was written with the help of an AI tool. Know more.)