NZD/USD holds positive ground above 0.6100, eyes on US CPI data – Crypto News – Crypto News
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NZD/USD holds positive ground above 0.6100, eyes on US CPI data – Crypto News

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  • NZD/USD edges higher to 0.6125 despite the stronger US Dollar.
  • The Federal Open Market Committee (FOMC) meeting begins its two-day meeting on Tuesday, with no change expected.
  • New Zealand’s annual GDP growth number for Q3 is projected to expand by 0.2% from 0.9%.
  • The US Consumer Price Index (CPI) will be a closely watched event on Tuesday.

The NZD/USD pair gains traction during the early Asian session on Tuesday. The pair holds positive ground for the second consecutive day despite the firmer US Dollar (USD). Investors will take cues from the US economic data and the Federal Open Market Committee (FOMC) rate decision ahead of the New Zealand growth numbers on Thursday. The pair currently trades around 0.6125, unchanged for the day.

The Federal Open Market Committee (FOMC) meeting begins its two-day meeting on Tuesday, with no change expected. The market is pricing the FOMC to maintain the interest rate unchanged at 5.25%–5.50% at its December meeting on Wednesday. Ahead of the key event, investors await the US Consumer Price Index (CPI) data for fresh impetus.

The monthly CPI figure is expected to rise 0.1% MoM from 0% and the annual rate is estimated to drop from 3.2% YoY to 3.1%. The annual core CPI, which excludes volatile food and energy prices, is projected to remain steady at 4.0%.

On the other hand, New Zealand’s Gross Domestic Product (GDP) for the third quarter (Q3) will be released on Thursday. The annual growth number is projected to expand by 0.2% from 0.9% in the previous reading, while the quarterly growth figure is estimated to grow by 0.5% versus 1.8% prior.

The US Consumer Price Index (CPI) will be due later on Tuesday. Later this week, the Federal Open Market Committee (FOMC) will announce the interest rate decision on Wednesday, and New Zealand GDP growth numbers for Q3 will be due on Thursday. These events could trigger volatility in the market and give a clear direction to the NZD/USD pair.

 

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