NZD/USD gains ground near 0.5820 after recent losses – Crypto News – Crypto News
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AUD/NZD eyes a break above 1.1700 on the downbeat NZ Retail Sales AUD/NZD eyes a break above 1.1700 on the downbeat NZ Retail Sales

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NZD/USD gains ground near 0.5820 after recent losses – Crypto News

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  • NZD/USD moves upward on the subdued performance of the US Dollar.
  • Israel has expanded its ground operations in Gaza; which could affect the Kiwi Dollar.
  • The market sentiment leans towards the Fed’s dovish stance on policy rates.

NZD/USD recovers the recent losses, trading near 0.5820 during the Asian session on Monday. The NZD/USD pair gains ground, benefiting from a relatively subdued performance of the US Dollar (USD) following the release of the Core Personal Consumption Expenditures Price Index data from the United States (US) on Friday.

However, the New Zealand Dollar (NZD) faced pressure after the recent release of soft headline Consumer Price Index (CPI) data, which might influence traders to anticipate that the Reserve Bank of New Zealand (RBNZ) to adopt a more accommodative stance on interest rate hikes, contributing to the weakening of the Kiwi pair. Investors await the Employment Change and Unemployment Rate for the third quarter scheduled to be released later in the week.

The situation in Israel, with the expansion of ground operations in Gaza and airstrikes on Hamas targets, could have an impact on the NZD/USD pair. Prime Minister Benjamin Netanyahu has labeled this as the second phase of the war. The recent blackout in Gaza, lasting over a day, has seen partial restoration of telephone and internet communications.

The market sentiment could improve on the significant diplomatic breakthrough as the US and China have reportedly agreed in principle on a meeting between Presidents Joe Biden and Xi Jinping in November. After months of delicate diplomatic efforts to mend ties, this potential meeting holds promise for constructive dialogue between the two nations.

On the other side, the traders of the Greenback seem to be booking profits after a three-day winning streak. US Core Personal Consumption Expenditures Price Index (YoY) eased at 3.7% in September compared to 3.8% in the previous reading. However, the monthly index improved to 0.3% from 0.1% previously.

Furthermore, despite the University of Michigan Consumer Index reporting 63.8 readings, exceeding the expected consistency at 63.0 in October, it appears that the positive outcome did not significantly boost the US Dollar. This suggests that the market sentiment is leaning towards the anticipation of no changes to interest rates by the US Federal Reserve (Fed) in the upcoming meeting on Wednesday.

 

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