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US dollar rises broadly as traders position ahead of CPI and Warsh
NZDUSD fell 0.9% to 0.5799, with the kiwi pressured after the Reserve Bank of New Zealand turned more hawkish last week.
Forexlive reports the U.S. dollar opened the North American session with broad gains against major currencies, led by the New Zealand dollar. NZDUSD slid 0.89% to 0.5799, while the Australian dollar fell 0.35%, the Canadian dollar declined 0.30%, and the Swiss franc, British pound, euro, and Japanese yen also weakened.
The kiwi’s relative underperformance followed last week’s hawkish shift from the Reserve Bank of New Zealand. After the RBNZ raised its Official Cash Rate by 25 basis points to 2.50% and indicated further tightening may be needed, the currency rallied, leaving it vulnerable to profit taking at the start of the week.
Forexlive also tied the move to a shift back toward the dollar as traders looked ahead to a busy U.S. calendar. The June CPI report is due later today, followed by Fed Chair Kevin Warsh’s testimony before Congress, events that could reshape expectations for Fed policy and affect FX positioning.
The early price action was described as defensive, with commodity-linked currencies leading declines while euro and yen held up somewhat better. The outlet said traders may stay cautious unless inflation data surprises materially, with positioning rather than conviction driving near term trading.