NZD/USD finds barricades around 0.6250, upside seems favored as Fed weighs on US banking

• NZD/USD has faced delicate barricades around 0.6250, upside looks favored amid weakness in the USD Index.
• The USD Index is declining towards 101.63 as various indicators are favoring neutral guidance from the Fed.
• Upbeat NZ Employment data favors continuation of hawkish stance from the RBNZ.

The NZD/USD pair has sensed selling pressure after a rally to near 0.6250 in the Asian session. The Kiwi asset is expected to continue its upside journey as the US Dollar Index (DXY) is under immense pressure amid expectations that higher interest rates by the Federal Reserve (Fed) were the major reason behind the United States banking fiasco.

S&P500 futures have generated some gains in the Asian session, portraying a minor recovery in the risk appetite of investors. The recovery could be short-lived as a cautionary approach is being advised ahead of the interest rate decision by the Fed.

Heather Boushey, a member of the Council of US Economic Advisers that interest rate hikes from the Fed had a negative impact on the banking sector.

The USD Index is declining towards the immediate support of 101.63 as various economic indicators are favoring neutral interest rate guidance from the Fed. US labor market conditions have eased as firms are cutting jobs. Also, JOLT's Job Openings dropped heavily to 9.59M from the consensus of 9.775M. Apart from that, consistent contraction in US manufacturing activities has accelerated fears of a recession ahead. This might force the Fed to shift focus to US economic conditions from the stubborn inflation.

On the New Zealand Dollar front, upbeat New Zealand Employment (Q1) has supported the continuation of the hawkish stance from the Reserve Bank of New Zealand (RBNZ). The Employment Change has landed at 0.8% higher than the consensus of 0.4% and the former release of 0.2%. While the Unemployment Rate has remained steady at 3.4% as reported in the previous quarter but lower than the estimates of 3.5%.