The New Zealand Dollar (NZD/USD) and Australian Dollar (AUD/USD) both slipped against the US Dollar on Thursday, with NZD/USD declining by 0.4% and AUD/USD easing by 0.5% as both pairs closed near session lows [1][2]. The NZD/USD pair has been unable to retest its early-March peak near 0.6120, while AUD/USD pulled back from four-year highs around the 0.7280 area, the strongest since June 2022 [1][2].
For the New Zealand Dollar, the session was marked by a lack of strong domestic drivers, with traders awaiting the upcoming Business NZ Performance of Manufacturing Index (PMI) for April, previously at 53.2, and the Business NZ Performance of Services Index (PSI) due over the weekend, previously at 46. The Q1 Producers Price Index (PPI) Output is also scheduled for release on Monday. Both currencies are sensitive to China's economic data, with China's April Industrial Production and Retail Sales (prior YoY readings at 5.7% and 1.7%, respectively) due the same day, given the countries' trade ties [1][2].
On the US side, April Retail Sales matched consensus at 0.5% month-over-month, while Initial Jobless Claims rose to 211,000, slightly above the 205,000 consensus, indicating a modest miss. Several Federal Reserve officials, including New York Fed President John Williams, made public remarks during the session. Market participants are now looking ahead to next week's FOMC Minutes and other key US data releases, such as the University of Michigan consumer sentiment and inflation expectations for NZD/USD, and the preliminary S&P Global PMI for AUD/USD [1][2].
Technical analysis shows both NZD/USD and AUD/USD holding above their respective 50-day and 200-day exponential moving averages, suggesting underlying support for both pairs. However, both pairs are exhibiting signs of fading bullish momentum, with Stochastic RSI readings indicating that upside progress may slow without fresh catalysts. Immediate resistance levels for NZD/USD and AUD/USD are at 0.5937 and 0.7258, respectively, while key support levels are at the 50-day and 200-day EMAs [1][2].
For the Australian Dollar, attention is turning to next week's Reserve Bank of Australia (RBA) Meeting Minutes and Westpac Consumer Confidence data, with the latter previously at a deeply negative -12.5%. These releases, along with China's economic data, are expected to provide further direction for the currency [2].
CONCLUSION
Both the New Zealand and Australian Dollars experienced moderate declines against the US Dollar as traders awaited key domestic and Chinese economic data, as well as central bank minutes. While both currencies remain technically supported above major moving averages, fading momentum and the absence of immediate catalysts have left them vulnerable to further pullbacks. Market participants are closely watching upcoming data releases for clearer direction.