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NZD/USD holds near 0.5880 as cautious RBNZ outlook caps gains
NZD/USD slipped about 0.1% after two sessions higher, as traders look to upcoming US inflation data for cues on the Fed.
The New Zealand dollar struggled to extend its rebound versus the US dollar, with NZD/USD trading around 0.5880 and down roughly 0.06% on the day after two straight sessions of gains, according to FXStreet.
FXStreet said the pair’s recovery has been limited by investor caution around the Reserve Bank of New Zealand’s monetary policy path, even though the RBNZ raised its policy rate for a second consecutive meeting.
The outlet noted that the US dollar’s lack of strength is helping contain NZD/USD downside, but attention is shifting to upcoming US inflation data that could influence expectations for the Federal Reserve’s next move.
FXStreet pointed to stronger US labor-market data as a partial offset, with Nonfarm Payrolls rising 162K in August versus 56K expected, while the unemployment rate stayed at 4.1%, and it highlighted Goldman Sachs’ view that a benign CPI could reduce the odds of further Fed rate hikes.