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NZD/USD steadies after RBNZ survey shows easing inflation expectations
A Reserve Bank of New Zealand survey put third-quarter inflation expectations at 2.34%, down from 2.53%, while US data cooled expectations for further Fed tightening.
NZD/USD steadied on Thursday’s American session, rebounding from two-week lows after the US dollar lost some momentum, FXStreet reported.
The move was tied to a Reserve Bank of New Zealand survey that showed third-quarter inflation expectations easing to 2.34% from 2.53%. Cooler expectations reduce the case for further RBNZ tightening and support a more dovish backdrop for the kiwi.
FXStreet said the US dollar’s soft tone was reinforced by weaker US producer prices and higher weekly Initial Jobless Claims, which cooled market bets for additional Fed tightening. Even with the bounce, the risk-sensitive NZD remained capped by a cautious tone around Middle East tensions, the outlet added.
Looking ahead, FXStreet pointed to upcoming US data, with Friday’s Retail Sales and Michigan Consumer Sentiment seen as the next key tests for the pair. Technicals showed NZD/USD around 0.5851, trading below the 20-period SMA near 0.5864, with support around 0.5842 to 0.5845.