NZD/USD loses traction below the 0.6200 mark amid a stronger Dollar – by lilyfinancial NZDUSD Majors Macroeconomics
The US GDP expanded 2.4% in the second quarter, beating expectations of 1.8% and 2.0% prior.The NZD/USD pair loses its traction and holds below the 0.6200 area in the early Asian session after retreating from a weekly high of 0.6275. The US, a measure of the value of the Greenback against six other major currencies, jumps to its highest level since July 11, near 101.70, as upbeat US economic figures boosts the Greenback on Friday.
As widely expected, the Federal Reserve raised interest rates by 25 basis points to 5.25%–5.5% on Wednesday. The rate was last seen just before the housing market collapse in 2007 and marked the highest level in more than 22 years. first estimate reported that the US real Gross Domestic Product expanded at a 2.4% annualized rate, beating the market expectation of 1.8% and following the 2% growth reported in the first quarter. Meanwhile, Durable Goods Orders rose 4.7% on a monthly basis to $302.
Due to the lack of significant data released from the New Zealand docket this week, it is difficult for the Kiwi to construct a bullish narrative, and the offshore events will be in the spotlight. However, the market expects a more hawkish stance from the Reserve Bank of New Zealand , which might raise the risk of a hard landing. This, in turn, could weigh on the Kiwi and act as a headwind for NZD/USD.
Looking ahead, the USD's valuation will likely continue to influence the pair's movement later in the day. Market participants will keep an eye on the US Core Personal Consumption Expenditure index, the Fed's preferred inflation gauge. The figure is expected to drop from 4.6% to 4.2% annually.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NZD/USD recovers early lost ground, upside seems limited ahead of the crucial Fed decisionNZD/USD recovers early lost ground, upside seems limited ahead of the crucial Fed decision – by hareshmenghani NZDUSD Fed InterestRate China Currencies
Read more »
NZD/USD Price Analysis: Upside momentum seems faded above 0.6200The NZD/USD pair senses selling pressure while attempting to climb above the immediate resistance of 0.6230 in the early New York session. The Kiwi as
Read more »
NZD/USD moves sideways above the 0.6200 mark with a focus on US GDPThe NZD/USD pair remains steady around the 0.6200 mark in the early Asian session after hitting multi-day highs at 0.6235 and pulling back. The US dol
Read more »
NZD/USD: Downside pressure alleviated above 0.6255 – UOBA move above 0.6255 should mitigate the selling bias in NZD/USD in the short term, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Qu
Read more »
NZD/USD Price Analysis: Delivers consolidation breakout as investors expect Fed rates reach peakNZD/USD Price Analysis: Delivers consolidation breakout as investors expect Fed rates reach peak – by Sagar_Dua24 NZDUSD Fed Breakouts DollarIndex GDP
Read more »