New Zealand Canadian and his upcoming predictions

At the economic level

The New Zealand-Canadian pair rose on Monday with a fluctuation of the pair over the past period with a decrease in Canadian data during this week.

New Chinese data also revealed today that deflationary pressures continue, with consumer prices falling for the fourth month in a row, and producer prices recording their largest decline in almost two years.

This may put some downward pressure on the New Zealand and Australian currencies, given the role of China as their main trading partner.

Domestically, the Reserve Bank of New Zealand recently cut interest rates by 25 basis points to 3.25%.

However, may's decision indicates that the monetary easing cycle is coming to an end, and the markets now expect the RBNZ to keep interest rates steady next July, taking into account the likelihood of a cut in August.

At the technical level

The new Canadian pair has risen near strong resistance levels at and around 0.8290, and the pair is also approaching downtrend levels on the four-hour frame.

Expectations are that the pair will start to pull back to target the levels of 0.8240 as an initial target and then 0.8170 near the next support levels.

This scenario fails if the resistance levels break through 0.8340.