NZD/USD tumbles to near 0.6130 despite mild correction in US Dollar, US PMI eyed – Crypto News – Crypto News
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NZD/USD tumbles to near 0.6130 despite mild correction in US Dollar, US PMI eyed – Crypto News

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  • NZD/USD has displayed a perpendicular decline to near 0.6130 amid a risk-off mood.
  • S&P500 futures have extended their downside as investors are getting cautious ahead of second quarter result season.
  • Fed policymakers are consistently favoring more interest rate hikes ahead.

The NZD/USD pair has posted a vertical fall to near 0.6130 in the early New York session. The kiwi The asset has delivered a bumpy ride amid headwinds of negative market sentiment due to accelerating fears of global recession.

S&P500 futures have extended their downside journey as investors are getting cautious ahead of the second-quarter results season. The major focus will be on the banking, manufacturing, and technology sector as tight credit conditions by financial institutions might have weighed on their margins, manufacturing activities have been contracting straight for the past seven months, and tech-savvy companies have been reporting weak guidance .

The US dollar index (DXY) has corrected further to near 102.80, however, the downside bias has not faded yet. While US Treasury yields have shown a massive decline. The yield offered by the 10-year US Treasury bonds have dropped to near 3.74%.

Meanwhile, Federal Reserve (Fed) policymakers are consistently favoring more interest rate hikes ahead. Current inflation is still twice the required rate of 2%. Following the footprints of Fed chair Jerome PowellFed Governor Michelle Bowman also felt that at least two more hikes are warranted.

In the American session, the preliminary US S&P pmi (June) will remain in focus. Investors will keenly watch Manufacturing pmi As per the figures the mentioned sector is consistently reporting contraction from the past seven months. Investors should note that a figure below 50.0 is considered a contraction in an activity.

On the Kiwi front, sheer monetary stimulus by the People’s Bank of China (PBoC) is failing to provide some strength to the New Zealand Dollar. To uplift China’s economic prospects, the PBoC is consistently favoring a dovish policy.

It is worth noting that New Zealand is one of the leading trading partners of China and expansionary PBoC policy supports the New Zealand Dollar.

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