NZD/USD Price Analysis: Kiwi needs to trespass 0.6350 for a bullish trend

• Weakness in the US Dollar Index is supporting a recovery in the kiwi asset.
• The Kiwi asset is holding above the 200-EMA, which indicates that the long-term upside bias is still solid.
• An oscillation in the 40.00-60.00 range by the RSI (14) indicates a consolidation ahead.

The NZD/USD pair is displaying back-and-forth moves around 0.6300 in the early Tokyo session. Earlier, the Kiwi asset attracted offers after failing to reclaim the critical hurdle of 0.6350. The New Zealand Dollar is expected to regain strength as the market mood has turned cheerful. Investors dumped the risk-aversion theme amid expectations of a further slowdown in the inflationary pressures in the United States.

The US Dollar Index (DXY) has shifted into a sideways profile and reacted less to the release of downbeat United States Manufacturing PMI and the Federal Open Market Committee (FOMC) minutes.