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NZD/USD falls near 0.5820 as New Zealand inflation disappoints for the Kiwi
New Zealand’s CPI rose 1.5% quarter over quarter and 4.1% year over year, figures that could keep the Reserve Bank of New Zealand restrictive, but the US dollar remains supported by geopolitical uncertainty and cautious sentiment.
FXStreet reports that NZD/USD is trading lower near 0.5820 on Wednesday, extending a recent pullback as stronger-than-expected New Zealand inflation has not been enough to lift the Kiwi sustainably.
New Zealand’s Consumer Price Index rose 1.5% quarter over quarter in the second quarter, beating a 1.4% market forecast, and accelerated to 4.1% year over year from 3.1%, topping expectations of 4.0%. FXStreet said the hotter data could reinforce expectations that the Reserve Bank of New Zealand will keep a restrictive monetary policy stance, or consider additional rate increases, but broader US dollar demand is currently outweighing domestic support.
The outlet added that investors are also watching US Initial Jobless Claims, expected to rise to 212K from 208K, with a lower-than-expected result potentially adding pressure on NZD/USD. FXStreet also cited near-term price levels, noting the pair is holding under the 20-period simple moving average near 0.5839 and faces nearby resistance around 0.5817, 0.5823 and 0.5834.