NZD/USD Price Analysis: Further downside towards 0.6160 appears imminent on mixed NZ data

• NZD/USD struggles for clear directions after welcoming bears the previous day.
• Business NZ PSI eased, Food Price Index improved in March.
• Sustained U-turn from 100-DMA, clear break of six-month-old ascending support keeps Kiwi sellers hopeful.
• Buyers need validation from 0.6390 to retake control.

NZD/USD stays sluggish around the 0.6200 round figure amid early Monday, after posting the biggest daily loss in 10 weeks the previous day. Even so, the Kiwi pair remains on the bear’s radar after New Zealand’s (NZ) clues for this week’s key inflation data flashed mixed signals.

That said, Business NZ PSI dropped to 54.4 for March versus 55.8 prior while the Food Price Index rose past marked forecasts of 0.4% to 0.8%, compared to 1.5% previous readings.

It’s worth noting that the NZD/USD pair’s clear U-turn from the 100-DMA, as well as a downside break of an ascending trend line from early October 2022, add strength to the bearish bias about the Kiwi pair, especially amid steady RSI (14) line.

With this, the quote appears all set to revisit the 200-DMA support of near 0.6160 before challenging the previous monthly low, as well as the yearly bottom, surrounding 0.6080. During the anticipated fall, the 0.6100 round figure may act as an intermediate halt.

Meanwhile, recovery moves need validation from the multi-day-old previous support line, now immediate resistance around 0.6230.

Following that, the 100-DMA and a nine-week-long horizontal resistance area, respectively near 0.6300 and 0.6390, quickly followed by the 0.6400 round figure, could challenge the NZD/USD bulls before giving them control.

NZD/USD: Daily chart

Trend: Further downside expected