New Zealand Dollar gathers strength to near 0.5950 after China holds loan rates steady in August
The NZD/USD pair gains momentum to near 0.5950 during the Asian trading hours on Thursday. The pair holds near a two-and-a-half-month high, bolstered by hawkish Reserve Bank of New Zealand (RBNZ) tone and softer US inflation data.
The New Zealand Dollar (NZD) rallied to near 0.5950 against the US Dollar (USD) during Thursday's Asian trading hours. This gain followed the Reserve Bank of New Zealand's (RBNZ) dovish tone and softer US inflation data. The People's Bank of China (PBOC) maintained its Loan Prime Rates (LPRs) without changes. Additionally, China's Commerce Ministry announced new corporate tax rates for companies dealing with anti-dumping measures on imported goods from the US, EU, Taiwan, and Japan.
New Zealand's Consumer Price Index (CPI) inflation was hotter than expected, supporting expectations of more RBNZ interest rate hikes this year. Meanwhile, the probability of a Federal Reserve rate hike in September declined from 47% to 32.7%. The NZD has been trading above its 12-month average, and analysts note that while domestic activity remains robust, inflation expectations are well-anchored, limiting the case for additional tightening.
The pair is currently supported by the 100-day SMA and faces resistance at the Bollinger upper band near 0.5960.
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