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NZ dollar holds near 0.5900 as Fed backdrop keeps USD firm
NZD/USD was down 0.2% on the day, while the US ISM manufacturing PMI slipped to 54.6 in August, and the next near-term catalyst for NZD is the RBNZ policy decision on Wednesday.
The New Zealand dollar stayed under pressure versus the US dollar, with NZD/USD trading around 0.5900 and down 0.24% on the day, as the US currency held modest gains after mixed US economic data, according to FXStreet.
US manufacturing activity remained in expansion territory but cooled, with the Institute for Supply Management manufacturing PMI falling to 54.6 in August from 55.6 in July, below the 55.2 consensus. The employment index declined to 51.2 from 52.8 and new orders eased to 53.7 from 56.7, while the prices paid index was unchanged at 71.1, signaling price pressures stayed elevated.
Labor market data were also mixed, with JOLTS job openings rising to 7.271M in July from 7.182M in June but still slightly below the 7.3M expected. The releases did not trigger a significant turn in the dollar, and the US Dollar Index, which tracks the greenback against a basket of six major currencies, rose to about 99.65 on Tuesday.
Attention is now shifting to the Reserve Bank of New Zealand, scheduled to deliver its monetary policy decision on Wednesday, which could steer the NZ interest-rate outlook. At the same time, markets are reassessing how the latest US data may affect the Federal Reserve’s monetary policy path.
Latest closeDollar index 99.65 ▲0.2%