NZD/USD trades higher for the second day around 0.6150, focus on US CPI data – Crypto News – Crypto News
Connect with us
Bulls attack 12-day-old resistance below 0.6200 Bulls attack 12-day-old resistance below 0.6200

others

NZD/USD trades higher for the second day around 0.6150, focus on US CPI data – Crypto News

Published

2 years ago

on

Share:

  • NZD/USD gains momentum as the US inflation is expected to ease.
  • US Dollar faces a challenge on downbeat US bond yields.
  • Investors expect no interest rate change by the Federal Reserve.

NZD/USD gains ground for the second consecutive trading day, bidding around 0.6150 during the Asian hours on Tuesday. The US Dollar (USD) turns negative on subdued US Treasury yields ahead of the US Consumer Price Index (CPI) scheduled to be released later in the North American session. The yearly US Consumer Price Index (CPI) data is expected to ease, with US Core CPI expected to remain consistent.

US Dollar Index (DXY) trades lower near 103.90 at the time of writing. The yield on 2-year and 10-year US bond coupons stands lower at 4.68% and 4.19%, respectively. However, the solid labor data from the previous week bolstered the Greenback as robust economic conditions in the United States (US) triggered the discussion on how long the Federal Reserve (Fed) will maintain higher interest rates.

However, the Fed is expected to not adjust the policy rate in its December meeting but the market is pricing in the expectation of a 25 basis points (bps) rate cut as early as March next year, which is providing support to underpinning the NZD/USD pair.

On the other side, Kiwi’s economic agenda, the Gross Domestic Product (GDP) data for the third quarter is set to be released by Statistics New Zealand on Thursday. Projections suggest a growth of 0.2%, a decline from the previous quarter’s 0.9% expansion. The annual growth is expected to fall substantially to 0.5% from the previous growth of 1.8%. Additionally, the Business NZ Performance of Manufacturing Index (PMI) will released by Business NZ on Friday.

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending