NZD/USD Price Outlook: Rises Toward 0.5750

The NZD/USD pair rises to around 0.5745 during European trading on Wednesday, as the New Zealand Dollar strengthens despite expectations that it will face collateral damage from the United States' impending tariff announcement. Antipodean currencies are outperforming their peers, even with President Donald Trump set to impose significant tariffs on China later today. The anticipated levies, including a 20% tariff reintroduction, are expected to negatively affect China's economy, which in turn could also weaken global economic growth, given that China is the US's largest trading partner. While the impact of these tariffs on New Zealand will be indirect, as the country heavily relies on exports to the US, it still faces risks from the global economic uncertainty.

The US Dollar trades cautiously ahead of the tariff announcement, with markets bracing for potential negative effects on US economic growth and inflationary pressures in the short term. The NZD/USD pair is currently moving within an Ascending Triangle chart pattern on the daily timeframe, signaling indecision in the market. The flat upper border is aligned with the January 24 high of 0.5795, while the upward-sloping lower boundary is drawn from the February low of 0.5516.

The 20-day Exponential Moving Average (EMA) hovers around 0.5725, suggesting a sideways trend for the pair. Additionally, the 14-day Relative Strength Index (RSI) is oscillating between 40.00 and 60.00, indicating reduced volatility. A break above the March high of 0.5832 could see the pair testing the 0.5900 resistance level and the November 29 high of 0.5930. Conversely, if the pair drops below the February low of 0.5516, it could revisit the 13-year low of 0.5470 and move towards the round-level support at 0.5400.

NZD/USD daily chart