NZD/USD flat lines around 0.6235-6240 area, remains close to monthly top set on Thursday

• NZD/USD struggles to gain any meaningful traction amid mixed fundamental cues.
• The Fed's signal for more rate cuts and a positive risk tone undermines the USD.
• China's economic woes seem to cap antipodean currencies, including the Kiwi. 

The NZD/USD pair seesaws between tepid gains/minor losses through the Asian session on Friday and currently trades around the 0.6235-0.6240 region, well within the striking distance of the monthly peak touched the previous day.

The US Dollar (USD) struggles to attract buyers and languishes near the YTD low touched on Wednesday amid bets for more interest rate cuts by the Federal Reserve (Fed), which, in turn, is seen lending some support to the NZD/USD pair. In fact, Fed members forecasted another 50 basis points fall in borrowing costs by the end of this year and projected the benchmark rates to fall to 3.4% in 2025, down from a prior forecast of 4.1%, before declining to 2.9% in 2026. 

Apart from this, the risk-on rally across the global equity markets turns out to be another factor undermining demand for the safe-haven Greenback and benefiting the risk-sensitive Kiwi. That said, persistent worries about an economic slowdown in China act as a headwind for antipodean currencies, including the New Zealand Dollar (NZD). That said, hopes for additional stimulus should continue to lend support to the NZD/USD pair and limit any meaningful decline. 

The National Development and Reform Commission of the People's Republic of China (NDRC), during a news conference on Thursday, promised that it will roll out a batch of incremental measures with good effects in a timely manner. China's state planner sounded confident of achieving full-year economic and social development goals. This, however, failed to impress bulls, warranting caution before positioning for an extension of the NZD/USD pair's one-week-old uptrend.

There isn't any relevant market-moving economic data due for release from the US on Friday. That said, a scheduled speech by Philadelphia Fed President Patrick Harker might influence the USD price dynamics. Apart from this, the broader risk sentiment should contribute to producing short-term trading opportunities around the NZD/USD pair. Nevertheless, spot prices remain on track to register strong weekly gains for the first time in the previous three.