NZD/USD Holds Steady Near 0.6030 as China PMI Fails to Ignite Momentum

NZD/USD Price Forecast: Flat Near 0.6030 After China PMI Misses Impact

Published: Thursday, June 5, 2025 | By Haresh Menghani, Tredu Forex Desk

The NZD/USD pair trades with a mild positive bias on Thursday for the second day in a row. Spot prices are currently hovering near 0.6030, showing limited movement following the release of China’s Caixin Services PMI, which came in at 51.1 for May, slightly better than last month’s 50.7.

However, the better-than-expected Chinese data failed to spark bullish momentum, as a modest uptick in the US Dollar (USD) weighed on the pair’s upside potential.

Technical Outlook: Resistance at 0.6050 Still Intact

From a technical standpoint, NZD/USD continues to trade within a multi-week ascending channel, indicating a well-established short-term uptrend.

Key Technical Indicators:

• Oscillators on hourly and daily charts remain in positive territory
• Momentum is strong but not yet overbought
• 0.6050 represents the 61.8% Fibonacci retracement level from the September 2024 to April 2025 decline

A break above 0.6050 is needed to confirm further gains, potentially targeting:

• 0.6080 (channel resistance)
• 0.6100 (psychological round figure)

Fundamental Snapshot: USD Firm, China PMI Upbeat

Despite improving Chinese Services PMI data, investor reaction remained muted:

• China Caixin Services PMI: 51.1 in May vs 50.7 prior
• US Dollar Index (DXY) holds firm amid cautious risk sentiment
• No major catalysts ahead, keeping traders on the sidelines

Related on Tredu.com:

• Live NZD/USD Chart with Technical Indicators
• What Drives NZD/USD Movement?
• Forex Trading Strategies for Ranging Markets

Conclusion: Bullish Bias Remains, But Breakout Needed

While technical signals suggest an upward bias, the pair needs a clear break above 0.6050 to unlock further bullish potential. Until then, the NZD/USD is likely to stay range-bound, influenced by USD performance and global macroeconomic data.