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NZD/USD slips toward 0.5945 as USD firms ahead of US PCE
NZD/USD was around 0.5945 in early European trade, with the US PCE inflation gauge and a Federal Reserve Chair speech at Jackson Hole set to drive USD moves.
NZD/USD faced renewed selling pressure on Wednesday, falling to a fresh weekly low around the 0.5945 area in early European trading, FXStreet reported.
The move comes as the US dollar regained traction ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index later today and Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole Symposium on Friday.
FXStreet said expectations around Federal Reserve policy, including diminishing odds of an immediate rate hike, along with easing inflation concerns tied to falling oil prices and developments surrounding the Middle East crisis, may limit how far the NZD/USD selloff can go.
On the technical side, the pair was described as holding above the 200-period EMA on the 4-hour chart and an upward trendline, while RSI near 46 points to consolidation rather than strong momentum, and repeated failures to clear 0.6000 raise caution for bullish traders.