NZD/USD flirts with multi-week high, trades above mid-0.6100s ahead of Fed – by hareshmenghani NZDUSD Fed Inflation Bonds Currencies
struggles to register any meaningful recovery and languishes near its lowest level since May 17 in the wake of expectations that the Federal Reserve will skip hiking interest rates at the end of a two-day policy meeting later today. The bets were reaffirmed by soft US consumer inflation figures on Tuesday, which, along with a modest downtick in the US Treasury bond yields, undermine the Greenback and act as a tailwind for the NZD/USD pair.
The US Labor Department reported that the headline US CPI barely rose in May and the year-on-year rate decelerated to the slowest pace since March 2021. The annual inflation print of 4.0%, meanwhile, is still twice the Fed's 2% target and kept hopes alive for further policy tightening by the Fed. In fact, the markets are pricing in a greater chance of a 25 bps lift-off at the July FOMC meeting, which should limit the downside for the US bond yields and lend support to the buck.
Apart from this, the pre-Fed anxiety and worries about a global economic slowdown, particularly in China, could further drive some haven flows towards the Greenback. This, along with the Reserve Bank of New Zealand's explicit signal that it was done with its most aggressive hiking cycle since 1999, might cap gains for thepair. Traders might also refrain from placing fresh bets and prefer to move to the sidelines heading into the key central bank event risk.
The aforementioned mixed fundamental backdrop makes it prudent to wait for strong follow-through buying before positioning for an extension of the recent recovery from the YTD low - levels just below the 0.6000 psychological mark touched in May.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
NZD/USD hits fresh multi-week high, around mid-0.6100s ahead of US CPIThe NZD/USD pair attracts fresh buying near the 0.6100 round-figure mark on Tuesday and builds on its steady intraday ascent through the first half of
Weiterlesen »
NZD/USD bulls step in ahead of the FedNZD/USD is 0.17% higher at the time of writing after moving up from a low of 0.6144 to a fresh high of 0.6161 in Tokyo trade. The focus is on the Fede
Weiterlesen »
NZD/USD Price Analysis: 200-SMA checks Kiwi buyers within weekly bullish channel, Fed in focusNZD/USD Price Analysis: 200-SMA checks Kiwi buyers within weekly bullish channel, Fed in focus NZDUSD Technical Analysis ChartPatterns SwingTrading Fed
Weiterlesen »
NZD/USD consolidates above the 200-day SMA post-US CPIIn Tuesday’s session, the NZD/USD managed to jump above the 200-day to a high of 0.6177 but retreated to 0.6145 as the US Dollar lost strength followi
Weiterlesen »
NZD/USD rejected at the 100-day SMA ahead of eventful weekThe NZD/USD was rejected at the 0.6150 level and the pair retraced to the 0.6120 area. As the market awaits significant economic data on Tuesday, visi
Weiterlesen »
NZD/USD Price Analysis: Aims to recapture 0.6150 amid lackluster USD Index ahead of US CPIThe NZD/USD pair is looking to recapture the previous day’s high of 0.6150 in the early European session. The Kiwi asset is getting strength as the US
Weiterlesen »