FxWirePro: NZD/USD extends gains above 21-EMA as kiwi bulls cheer upbeat NZ CPI data and PBOC rate cut

NZD/USD chart - Trading View 

NZD/USD was extending gains for the 2nd straight session, trades 0.46% higher after closing 1.11% higher in the previous session.

Kiwi bulls likely buoyed after upbeat NZ CPI data and the People’s Bank of China’s (PBOC) rate cut decision.

New Zealand’s Q1 Consumer Price Index (CPI) rose to 2.5% YoY and 0.8% QoQ beating forecasts of 1.8% and 0.3% respectively.

The PBOC cut one and five-year loan prime rates to 3.85% and 4.65% respectively from a prior of 4.05% and 4.75%.

Technical bias for the pair is turning slightly bullish on the intraday charts. Price action has edged above 200H MA.

RSI has edged above 50 and momentum is bullish. Scope for further upside. Test of 55-EMA at 0.6130 likely.

Volatility is shrinking, any further upside only on decisive break above. Failure to hold above 21-EMA negates any bullish bias.