NZD/USD Price Forecast: Sees more downside as short-to-long-term EMAs slope downwards

• NZD/USD slumps to near 0.5725 as the New Zealand Dollar underperforms its peers.
• The RBNZ is expected to reduce its interest rates further this year.
• Easing US-China trade tensions support the US Dollar.

The NZD/USD pair declines 0.27% to near 0.5725 during the Asian trading session on Tuesday. The Kiwi pair faces selling pressure as the New Zealand Dollar (NZD) underperforms across the board amid growing acceptance among investors that the Reserve Bank of New Zealand (RBNZ) will loose its monetary policy further to support downside inflation risks.

Stats New Zealand (NZ) showed on Monday that the headline Consumer Price Index (CPI) rose by 3% on an annualized basis, as expected, faster than the prior reading of 2.7%. However, the increased CPI growth was led by one-time and seasonal items, including an 8.8% jump in local government land taxes, a Bloomberg report showed.

Meanwhile, the underlying price trend continued to cool down, paving the way for further monetary policy easing in the near term.

Secondly, higher US Dollar (USD) due to easing United States (US)-China trade frictions and likely reopening of federal shutdown has also weighed on the Kiwi pair.

This week, investors will keenly focus on the delayed US CPI data for September, which is scheduled for Friday.

NZD/USD holds its over six-month low around 0.5740. The overall trend of the Kiwi pair is bearish as all short-to-long-term Exponential Moving Averages (EMAs) slope downwards.

The 14-day Relative Strength Index (RSI) stays below 40.00, suggesting a strong bearish momentum.

Going forward, the asset could slide towards the April 10 low of 0.5628 and the round-level support of 0.5600, if it breaks below the October 14 low of 0.5682.

In an alternate scenario, the Kiwi pair would rise towards the June 19 high of 0.6040 and the September 11 low of 0.6100 if it manages to break above the psychological level of 0.6000.

NZD/USD daily chart