NZD/USD picks up bids to 0.7145, inside a short-term trading range, amid the early Asian session trading on Tuesday. The kiwi pair posted mild gains the previous day as the US dollar buyers took a breather and economic forecasts from the New Zealand Institute of Economic Research (NZIER) printed rosy scenario. Though, tapering fears and a return of Aussie, as well as Chinese, traders after a long weekend could test the recovery moves.

In its latest economic outlook, published the previous day, NZIER said, “Beyond the weaker starting point for GDP growth, the near-term growth outlook has been revised up. On average, annual average growth in GDP is expected to reach 5 percent in March 2022.” The key New Zealand forecaster also said, “Although the longer-term employment growth outlook has been revised lower, the unemployment rate has also been revised lower over the projection reflecting the tighter labor market. Inflation forecasts have been revised higher across the projection.”

Moving on, NZD/USD traders will pay attention to how its largest trading partners, namely Australia and China, react to the latest developments. However, fears of the key FOMC and NZ GDP release may restrict the pair’s immediate performance ahead of today’s US Retail Sales for May.

Presented by David White at BlackBull Markets