NZD/USD is testing the lower edge of its consolidation range and the 200-day moving average near 0.5800. A failure to reclaim resistance at 0.5940 would leave the pair vulnerable to a deeper decline, with downside projections at 0.5730 and 0.5620, Société Générale's FX analysts note.

NZD/USD tests lower bound of descending channel

"NZD/USD is attempting to break below the lower boundary of the consolidation range that has contained price action since April. The pair is currently testing the 200-day moving average and is approaching the lower band of a multi-month descending channel near 0.5800."

"While a brief rebound cannot be ruled out, failure to surpass the peak achieved earlier this week at 0.5940 may signal the risk of a deeper pullback. A sustained move below 0.5800 would open the door to objectives at projections of 0.5730 and 0.5620."