New Zealand Dollar remains depressed as USD bulls look to crucial data amid Fed hike bets
The NZD/USD pair attracts some sellers following a modest Asian session uptick to the 0.5635-0.5640 region on Thursday, stalling the previous day's bounce from a two-week low, touched after the Reserve Bank of New Zealand (RBNZ) policy update.
The New Zealand Dollar (NZD) remains under pressure as US Dollar (USD) bulls anticipate key economic data and Federal Reserve (Fed) policy decisions. On Thursday, the NZD/USD pair hovered in the 0.5635-0.5640 range after a modest gain from a two-week low, following the Reserve Bank of New Zealand (RBNZ) policy update. The USD Index (DXY) showed signs of strength after a post-FOMC corrective slide from a two-week high, driven by factors such as persistent inflation concerns and geopolitical risks.
Fed Chair Kevin Warsh reiterated the central bank's commitment to addressing these issues, alongside energy-driven price pressures, suggesting potential further tightening. Traders now estimate an 80% chance of a December Fed rate hike, backed by Middle East tensions. Meanwhile, the RBNZ's decision to hold interest rates added to the NZD's downward pressure.
USD bulls are currently waiting for more US economic indicators, including the Advance Q3 GDP report and the Personal Consumption Expenditures (PCE) Price Index, before making additional bets. The geopolitical risk premium, fueled by tensions in the Middle East and the potential for a US-led military campaign in Iran, further supports the USD.
The NZD/USD pair is expected to continue its downward trend, with the focus remaining on upcoming US economic releases.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
