Anna 
In Monday’s European session, the NZD/USD pair discovered a temporary cushion near 0.6080 following a significant sell-off in the last two trading sessions. The Kiwi asset rebounded to the round-level resistance of 0.6100 as market sentiment improved following China’s release of Industrial Production and Retail Sales data for February, which exceeded expectations.
China’s Retail Sales grew at a higher pace of 5.5%, surpassing expectations of 5.2%, although lower than the prior reading of 7.4%. Meanwhile, Industrial Production unexpectedly rose to 7.0% against the consensus of 5.0% and the former reading of 6.8%. The positive economic growth in China enhances the attractiveness of the New Zealand Dollar due to the close trade ties between the two economies.
Market sentiment will be closely monitored this week as various central banks are set to announce interest rate decisions. The Federal Reserve (Fed) is expected to maintain interest rates unchanged in the range of 5.25%-5.50% during Wednesday’s policy decision, alongside the release of the dot plot and economic projections.
The US Dollar experiences slight pressure amidst a cautiously optimistic market mood, with the US Dollar Index (DXY) gradually dropping to 103.40.
NZD/USD has been trading within a range of 0.6037-0.6218 on a daily timeframe, indicating indecisiveness among market participants. The 20-period Exponential Moving Average (EMA) near 0.6131 closely tracks spot prices.
The 14-period Relative Strength Index (RSI) oscillates within a range of 40.00-60.00, signaling a sharp contraction in volatility.
Looking ahead, a downside move below the February 13 low near 0.6050 could expose the asset to the psychological support of 0.6000, followed by the November 9 high at 0.5956.
Conversely, an upside move would materialize if the asset breaks above the round-level resistance of 0.6200, potentially driving it towards the February 22 high at 0.6220, followed by the January 11 high at 0.6260.
