NZD/USD rises to highs since March, market await drivers

• NZD/USD buyers advanced and pushed the pair to levels last seen in March at around 0.6148.
• May’s ANZ business survey will be Tuesday’s highlight on the NZ side.
• Across the Pacific, markets await GDP, PCE, and Fed Beige book to gather additional data on the US economic health.

The NZD/USD pair traded higher on Monday while US traders remained on the sidelines, resting on Memorial Day.

In the US scope, the Federal Reserve's (Fed) upcoming Beige Book Report could set the tone for the NZD/USD pair on Wednesday. In addition, the core Personal Consumption Expenditure (PCE) reading for April, will be highly looked upon on Friday and is expected to remain steady at 2.8% YoY. The Q1 Gross Domestic Product (GDP) revision will be released on Thursday which might also shake markets.

In addition, Fed speakers, who are scheduled throughout the week, may bring nuanced insight into the current Federal stance ahead of the media blackout period. Current market odds indicate around 50% odds of a cut in September and an 80% chance of a November rate cut. Those odds remain low for June and July

As for New Zealand, investors are banking on the May ANZ business survey due this Tuesday to shed light on areas of concern like domestic inflation and business activity.

NZD/USD technical analysis

In the daily analysis, the Relative Strength Index (RSI) shows a positive trend with the recent RSI readings hovering around the 60 to 70 territory, indicating substantial buying pressure. The slope has risen compared to previous sessions, suggesting an increase in bullish momentum. This positive tendency in the RSI coincides with rising green bars on the Moving Average Convergence Divergence (MACD), which points to a continued upward trend.

NZD/USD daily chart

In addition, the NZD/USD pair is in a strong upward trend, trading above its 20, 100, and 200-day Simple Moving Averages (SMAs). This suggests that buyers flipped the tables and secured a bullish outlook for the long and short term.