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NZ dollar edges higher near 0.5850 ahead of US PPI release
NZD/USD rose toward 0.5845 as the US dollar softened, with traders focused on August PPI forecasts of 5.3% year over year for the headline and 4.6% for core.
The NZD/USD pair moved higher to around 0.5845 in early Asian trading on Thursday, supported by a softer US dollar, FXStreet said. The move put the pair near the 100 day moving average around 0.5843, while it remained capped below a key reference level near 0.5906.
Market attention is on US Producer Price Index data due later this week, which could influence expectations for the Federal Reserve ahead of its September 14-15 meeting. Economists expect headline PPI to rise 5.3% year over year in August, while core PPI is projected to increase 4.6% year over year.
FXStreet noted that a stronger than expected PPI reading could strengthen the case for a September rate hike and lift the dollar, while a cooler print could support expectations for a hold. The piece also pointed to the Reserve Bank of New Zealand’s view that current policy remains accommodative, with a focus on gradual removal of monetary stimulus.
On the technical front, FXStreet said NZD/USD is consolidating in the lower half of its Bollinger envelope, with the Relative Strength Index near 44. It identified support around the 100 day moving average near 0.5845 and a floor around 0.5820, while resistance sits near 0.5905, with a daily close above that level potentially opening the door to the upper band near 0.5990.