NZD/USD Rebounds from Year-to-Date Low Despite Economic Data
In recent trading, the NZD/USD currency pair has managed to rebound from its year-to-date low of 0.5772, and it is currently trading around 0.5830 during the Asian session on Friday. The pair had dipped to its lowest level on Thursday since November 2022, primarily due to the New Zealand Dollar (NZD) coming under pressure. This pressure was further exacerbated by the release of the Consumer Price Index (CPI) data from New Zealand, which added to the bearish sentiment surrounding the currency.
Despite these challenges, there are a few factors that could provide some support for the NZD/USD pair. The ANZ – Roy Morgan Consumer Confidence report, which showed an improvement in October, reaching 88.1 from 86.4 previously, could offer minor support to the Kiwi.
Traders closely watching the pair are anticipating that the Reserve Bank of New Zealand (RBNZ) will adopt a more accommodative stance on interest rate hikes, which could contribute to the weakening of the Kiwi. Additionally, recent statements from Israel's Prime Minister Benjamin Netanyahu regarding a potential ground assault on Gaza have intensified market sentiment, adding to the downward pressure on the pair.
However, the New Zealand Dollar has managed to gain some profits despite better-than-expected economic data from the United States. The preliminary US Gross Domestic Product (GDP) Annualized figure expanded by 4.9% in the third quarter, marking a significant improvement from the previous reading of a 2.1% expansion and surpassing the 4.2% expectations.
On the flip side, the weekly Initial Jobless Claims for the week ending October 21 came in at 210,000, slightly higher than the previous reading of 200,000 and exceeding expectations of 208,000.
The US Dollar Index (DXY) has been under downward pressure as the US Federal Reserve (Fed) is expected to keep interest rates unchanged in the upcoming meeting next week. Currently, the DXY is hovering near 106.50. The US Dollar (USD) is facing challenges in maintaining its recent gains, and the decline in US Treasury yields observed in the previous session is putting pressure on USD bulls.
Investors are eagerly awaiting the release of the US Core Personal Consumption Expenditures (PCE) data on Friday, which could provide further insight into the overall economic outlook for the United States. The outcome of this data release may have a significant impact on the direction of the NZD/USD pair in the coming days.
In recent trading, the NZD/USD currency pair has managed to rebound from its year-to-date low of 0.5772, and it is currently trading around 0.5830 during the Asian session on Friday. The pair had dipped to its lowest level on Thursday since November 2022, primarily due to the New Zealand Dollar (NZD) coming under pressure. This pressure was further exacerbated by the release of the Consumer Price Index (CPI) data from New Zealand, which added to the bearish sentiment surrounding the currency.
Despite these challenges, there are a few factors that could provide some support for the NZD/USD pair. The ANZ – Roy Morgan Consumer Confidence report, which showed an improvement in October, reaching 88.1 from 86.4 previously, could offer minor support to the Kiwi.
Traders closely watching the pair are anticipating that the Reserve Bank of New Zealand (RBNZ) will adopt a more accommodative stance on interest rate hikes, which could contribute to the weakening of the Kiwi. Additionally, recent statements from Israel's Prime Minister Benjamin Netanyahu regarding a potential ground assault on Gaza have intensified market sentiment, adding to the downward pressure on the pair.
However, the New Zealand Dollar has managed to gain some profits despite better-than-expected economic data from the United States. The preliminary US Gross Domestic Product (GDP) Annualized figure expanded by 4.9% in the third quarter, marking a significant improvement from the previous reading of a 2.1% expansion and surpassing the 4.2% expectations.
On the flip side, the weekly Initial Jobless Claims for the week ending October 21 came in at 210,000, slightly higher than the previous reading of 200,000 and exceeding expectations of 208,000.
The US Dollar Index (DXY) has been under downward pressure as the US Federal Reserve (Fed) is expected to keep interest rates unchanged in the upcoming meeting next week. Currently, the DXY is hovering near 106.50. The US Dollar (USD) is facing challenges in maintaining its recent gains, and the decline in US Treasury yields observed in the previous session is putting pressure on USD bulls.
Investors are eagerly awaiting the release of the US Core Personal Consumption Expenditures (PCE) data on Friday, which could provide further insight into the overall economic outlook for the United States. The outcome of this data release may have a significant impact on the direction of the NZD/USD pair in the coming days.
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