• NZD/USD falls to near 0.6130 as the New Zealand Dollar exhibits weakness ahead of the Q1 GDP data.
• The USD Index holds its immediate support of 105.00 in a holiday market mood.
• NZD/USD declines toward the horizontal support of the Broadening Triangle pattern.

The NZD/USD pair slumps to near 0.6130 in Wednesday’s American session. The Kiwi asset drops as the New Zaland Dollar comes under pressure ahead of the New Zealand (NZ) Q1 Gross Domestic Product (GDP) data, which will be published on Thursday. The NZ economy is estimated to have remained stagnant.

Weak economic performance would boost expectations of early rate cuts by the Reserve Bank of New Zealand (RBNZ). The RBNZ has been keeping its Official Cash Rate (OCR) higher at 5.5% for more than a year due to stubborn inflationary pressures.

Meanwhile, the US Dollar (USD) edges down in a thin volume trading session due to a holiday in United States (US) markets on account of Juneteenth. The US Dollar Index (DXY) holds its crucial support of 105.00. However, the near-term outlook has become uncertain as market participants expect the Federal Reserve (Fed) to cut interest rates twice this year.

This week, the US Dollar will be guided by preliminary S&P Global PMIs for June, which will be published on Thursday. The agency is expected to show a decline in the Composite PMI due to weakness in manufacturing as well as the service sector.