NZD/USD struggling to climb over 0.6040 after catching a soft rebound for Tuesday

• The NZD/USD is seeing small gains on Tuesday, but is struggling to climb over near-term resistance.
• The Kiwi is getting knocked back from 0.6040 after building a floor from the 0.6000 handle.
• With the economic calendar anemic on the Kiwi side, market direction will be determined by US inflation figures this week.

The NZD/USD found some soft support for Tuesday's trading session, putting in a daily floor near 0.5998, but bullish momentum remains limited and the Kiwi (NZD) is struggling to find a foothold above 0.6040 against the US Dollar (USD).

Economic data on the calendar is incredibly thin and low-impact for the Kiwi this week, though NZD traders will want to keep one eye on the New Zealand Business NZ Purchasing Manager Index (PMI) for September, which last read at a contracting 46.1, and is slated to print at 21:30 GMT on Thursday.

Wednesday brings US Producer Price Index (PPI) figures, with the annualized September reading expected to tick upwards from 2.2% to 2.3%, while Thursday's Consumer Price Index (CPI) for the same period is forecast to print slightly back at 4.1% versus the previous 4.3%.

NZD/USD Technical Outlook

The Kiwi's Tuesday bounce is dragging the NZD/USD higher, but the 0.6050 handle remains the level to clear before the pair can claim new six-week highs, with the 50-day Simple Moving Average (SMA) now providing technical support from 0.5950, with technical resistance from the 200-day Simple Moving Average (SMA) sitting just below 0.6175.

Despite a near-term rebound from 2023's lows near 0.5850, the Kiwi remains firmly lower against the US Dollar for the year, down nearly 6% from the last meaningful swing high at July's peak near 0.6410, and in the red over 7.5% from 2023's February high at 0.6540.

NZD/USD Daily Chart

NZD/USD Technical Levels