NZD/USD clings to mild gains below 0.6100 on upbeat NZ data, softer US Dollar

• NZD/USD remains mildly bid, keeping week-start gains amid sluggish Asian session.
• ANZ Commodity Price Index rose past market consensus and prior readings in May.
• Downbeat US data weigh on hawkish Fed bets and US Dollar amid lackluster markets.
• RBA, risk catalysts may entertain intraday traders amid light calendar at home.

NZD/USD stays on the buyer’s radar amid the unimpressive Asian session on Tuesday, mildly bid near 0.6080 by the press time. In doing so, the Kiwi pair cheers upbeat data at home and the risk-positive headlines surrounding the US-China ties, as well as the downbeat US data. However, a lack of major data/events and a cautious mood ahead of the Reserve Bank of Australia (RBA) Monetary Policy Meeting keeps the traders on the dicey floor of late.

That said, New Zealand’s (NZ) ANZ Commodity Price Index for May rose past -1.7% prior readings and -0.2% expected figures to 0.3%.

Additionally, Reuters came out with headlines suggesting improvement in the US-China relations, by citing Chinese media, amid early Tuesday in Europe. The news quotes, “a frank, constructive and fruitful communication on promoting Sino-US relations and properly managing differences,” between China's Vice Foreign Minister and a senior US State Department official.

Alternatively, mostly downbeat US data contrasts with the comments from International Monetary Fund (IMF) Managing Director Kristalina Georgieva to prod the market sentiment amid a light calendar and the Fed blackout period. Additionally, concerns about the need for the US large banks to hold more capital to battle the landing crisis prod the sentiment.

That said, the US ISM Services PMI declined to 50.3 for May versus 51.5 expected and 51.9 prior whereas growth of the Factory Orders also deteriorated during the stated month to 0.4% versus 0.5% market forecasts and 0.9% previous readings. It should be noted that the final readings of S&P Global Composite PMI and Services PMI also marked softer figures for May. On the other hand, IMF’s Georgieva flagged concerns about more Fed rate hikes.

Against this backdrop, Wall Street closed in the red whereas S&P500 Futures remain indecisive by the press time. Furthermore, the US 10-year Treasury bond yields remain pressured around 3.68%, after reversing Friday's rebound the previous day, whereas the two-year bond coupons also defend the week-start bearish bias near 4.46% by the press time.

Looking ahead, NZD/USD may take clues from the AUD/USD’s reaction to the RBA announcements. Following that, risk catalysts and second-tier data from China may entertain Kiwi pair traders amid a light calendar at home.

Technical analysis

The first daily closing beyond the 10-DMA hurdle, around 0.6060 by the press time, allows NZD/USD buyers to aim for the previous support line from mid-November 2022, around 0.6130 by the press time.