The New Zealand dollar faces pressure due to expectations of reduced inflation in New Zealand in the first quarter by 2.5%, which is a significant decrease. The RBNZ's inflation target remains at 1-3%. Considering the current inflation trend and economic growth, it is anticipated that the RBNZ will not increase interest rates with certainty.

The US Dollar Index (DXY) has been on an uptrend since the beginning of the past month. The strengthening of the US dollar has led to yields on US government bonds, with 2-year and 10-year Treasury yields at 4.47% and 4.17%, respectively. However, yields are expected to increase further if the dollar continues to strengthen.

Investors are awaiting the release of US inflation data, which is scheduled for today. Analysts expect US inflation to increase by 2.9% annually, compared to the previous 3.4%. Core inflation may increase by 3.7%, compared to the previous 3.9%.