NZD/USD Price Analysis: Aims to refresh monthly low below 0.6200

• Risk-off profile ahead of FOMC minutes and US ISM PMI has strengthened the US Dollar.
• A shift in the auction profile below the 200-EMA has weakened the New Zealand Dollar.
• The RSI (14) has dropped firmly inside the bearish range, which indicates more weakness ahead.

The NZD/USD pair is oscillating below the critical hurdle of 0.6250 in the early Asian session. The Kiwi asset rebounded firmly after refreshing a monthly low at 0.6200 amid the risk aversion theme. Investors preferred to deploy their funds into safe-haven to dodge volatility ahead of United States ISM Manufacturing PMI and Federal Open Market Committee (FOMC) minutes.

The US Dollar Index displayed a firmer recovery after testing a 15-day low around 103.10 with less selling pressure, which pushed the asset above 104.30.

NZD/USD is auctioning below the 200-period Exponential Moving Average (EMA) at 0.6259. The Kiwi asset is hovering around its crucial resistance of 0.6248 after a recovery move, however, the downside bias is still solid.

The 20-and 50-EMAs have also delivered a bear cross at 0.6315, which strengthens the downside bias in the further auction.

Also, the Relative Strength Index (RSI) (14) has slipped sharply into the bearish range of 20.00-40.00, which indicates that the downside momentum is active now.

Should the Kiwi asset breaks below the round-level support of 0.6200, the US Dollar will get stronger and will drag the major below November 28 low at 0.6155 followed by November 28 low at 0.6087.

Alternatively, a recovery move above December 30 high at 0.6373 will drive the kiwi asst towards December 19 high at 0.6409. In case, the New Zealand Dollar pushes the asset above the latter, the major will march towards December 15 high at 0.6500.

NZD/USD four-hour chart