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New Zealand dollar edges higher versus US dollar but stays bearish

NZD/USD rose to about 0.5645, after finding support near 0.5625, while traders cited hawkish Fed expectations for a longer run of USD strength.

Reported · Written up by our desk · Major Pairs

The New Zealand dollar was modestly higher against the US dollar in Asian trading on Wednesday, with NZD/USD up about 0.11% to roughly 0.5645, after the pair found a cushion near 0.5625 on Tuesday following a sharp multi week decline, according to FXStreet.

FXStreet reported that the Kiwi gained on slight US Dollar Index pullback, after the DXY revisited a two month high around 101.64, but noted that the near term outlook remains bearish as experts expect the US dollar to stay supported by hawkish Federal Reserve interest rate expectations.

The outlet pointed to comments from New York Fed Governor John Williams, who said one further rate hike is likely this year if inflation stays entrenched, while also adding there is no need for urgency after a September decision and more data will guide what comes next.

FXStreet also cited stronger than expected China manufacturing PMI for September, which came in at 52.1 versus 51.6 estimates and 51.5 prior, as part of the broader backdrop as NZD/USD steadied near support.

Latest closeDollar index 101.25 ▲0.3%

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