Today, the New Zealand dollar (NZD) inched higher against the US dollar (USD) with the amount of more than 0.7200. 

There is a continuous increase in the NZD/USD currency pair since the last two months, and there is the hope that the pair might continue its forward momentum ahead because the upside price movements show a higher lift.

News of consumer inflation expectations adds the role of catalyst in the forward direction of the NZD/USD pair.

The Reserve Bank of New Zealand (RBNZ) released the consumer inflation expectations a few days back on May 07, 2021. According to FXStreet.com, the data for Quarter 2 remained 2.05% compared to the quarter before data of 1.86%.

Company managers’ projections of annual CPI two years from now are calculated by the inflation forecasts. Inflation is described as a rise in expectations that precedes an increase in interest rates. A high reading indicates that the NZD is positive (or bullish), while a low reading indicates that it is dovish (or bearish).

As of writing the NZD/USD pair hovers around 0.7286. On the upper side of the pair, there is the resistance at 0.7379 which might not allow the pair NZD/USD toward the forward direction.

Conclusion

Given the pair’s recent price action, buying the pair about 0.7387 could be a better short-term option.