NZDUSD Pauses as Traders Await Key U.S. DataNZD/USDOANDA:NZDUSDMr1-5The NZDUSD pair has entered a consolidation phase after rebounding from the lower low area of the descending channel (image 1). The Kiwi Dollar gained some strength earlier this week as the U.S. Dollar softened, but momentum has since stalled as traders wait for U.S. GDP and the PCE Price Index. Why the Kiwi Stalled Fed Signals: Comments from New York Fed President John Williams suggested potential rate cuts ahead, pushing USD lower and lifting NZD temporarily. Wait-and-See Mode: With GDP and inflation reports looming, traders are reluctant to take aggressive positions. What to Watch This Week U.S. GDP: Stronger growth = USD strength; weaker growth = Kiwi relief rally. PCE Price Index: The Fed’s preferred inflation gauge. Stubborn inflation could delay rate cuts, while softer data would likely weaken USD. Risk Sentiment: NZD remains a “risk-sensitive” currency, so global equities and commodity flows will also play a role. Short-Term Trading Setup ⚡ Bias: Rebound from lower channel, cautious upside. Entry Zone: 0.5850 – 0.5875. Target: 0.5960 (mid-channel resistance). Stop Loss: Below 0.5800. RR: ~1:3. If U.S. data surprises stronger, watch for a retest of 0.5800 as key support. Final Summary NZDUSD is caught between a soft USD outlook from potential Fed easing and cautious sentiment ahead of U.S. data. Traders should watch GDP and PCE closely — they’re likely to set the next big move. For now, the Kiwi holds near the channel’s lower boundary, offering tactical rebound setups, but the bigger picture still points to a downtrend unless a breakout confirms. 👉 Follow me for more 1:5 RR trade ideas and real-time FX setups.