- NZD/USD rebounded around 0.6085 after bottoming at the lowest since November last week
- US ISM Services PMI fell to 50.3 in May.
- S&P Global Composite PMI retreated to 54.3.
The NZD/USD traded with gains at the beginning of the week near 0.6070, fueled by poor economic data from the US, which sparked a US Dollar sell-off. In reaction to the data, markets are perceiving a stronger case for the Federal Reserve (Fed) not hiking rates in the upcoming meeting on June 13-14 making the US bond yields decline.
US bond yields decline following weak economic data
The US Institute for Supply Management (ISM) Service PMI came in at 50.3 in May vs the 51.5 expected and decelerated from its previous figure of 51.9. In addition, the S&P Global Composite final estimate for the same month slid to 54.3 vs the 54.5 expected from the last reading of 55.1. Meanwhile, the service sector PMI final revision printed at 54.9 vs the preliminary reading of 55.1.
Following the disappointing data, US bond yields have declined throughout the yield curve. The 10-year bond yield has fallen to 3.69%. Similarly, the 2-year yield stands at 4.48%, while the 5-year yield sits at 3.83%, which weighs on the US Dollar.
According to the CME FedWatch Tool, investors are currently assigning a 77.10% probability to the Federal Reserve maintaining the target rate at 5.25% and not implementing an interest rate hike in the upcoming June 13-14 meeting. However, it is worth highlighting that the Fed's primary objective of achieving full employment and price stability remains steadfast. As a result, the release of the May Consumer Price Index (CPI) on June 13 will play a crucial role in shaping the FOMC's (Federal Open Market Committee) expectations and considerations for future interest rate decisions and hence impacting the US Dollar price dynamics.
Levels to watch
Technically speaking, the NZD/USD maintains a neutral to a bearish outlook for the short term, as per indicators on the daily chart. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), despite standing in negative territory, show a loss of momentum, suggesting that sellers seem to have run out of steam.
On the upside, upcoming resistance for NZD/USD is seen at the daily high of 0.6085, followed by the psychological mark at 0.6100 and June 2 high around 0.6115. On the other hand, if the Kiwi retakes the downside, immediate support levels are seen at the daily low at 0.6040, followed by the psychological mark at the 0.6000 level and the cycle low at 0.5985.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

Gold gives away some gains, slips back to $2,980
Gold retraced from its earlier all-time highs above the key $3,000 mark on Friday, finding a footing around $2,980 per troy ounce. Profit-taking, rising US yields, and a shift to a risk-on environment seem to be putting the brakes on further gains for the metal.

EUR/USD remains firm and near the 1.0900 barrier
EUR/USD is finding its footing and trading comfortably in positive territory as the week wraps up, shaking off two consecutive daily pullbacks and setting its sights back on the pivotal 1.0900 mark—and beyond.

GBP/USD remains depressed, treads water in the low-1.2900s
GBP/USD is holding steady in consolidation territory after Friday’s opening bell on Wall Street, hovering in the low-1.2900 range. This resilience comes despite disappointing UK data and persistent selling pressure on the USD.

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.

Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.