The NZD/USD tumbles to a fresh year-to-date low at 0.5929 during the North American session, as Wall Street finished positive, ahead of Fed’s decision on Wednesday. Factors like an aggressive tightening cycle by the Federal Reserve, threatening to spur a US recession, keep investors on their toes.
As the North American session finishes, the NZD/USD is edging lower after hitting a daily high at 0.6002US trading at 0.5955, below its opening price by 0.57%.
Late in the New York session, sentiment improved. The lack of US economic data maintained market participants awaiting Fed’s decision on Wednesday, where Chair Powell and Co. are expected to raise rates by 75 bps. Even though US equities rose, US Treasury bond yields, mainly the 10-year benchmark note, increased to 3.494%.
Data-wise, the US NAHB housing market index fell for the ninth straight month, signaling a deceleration in the housing market. At 46, the index is well off its post-pandemic high, portraying the influence of higher interest rates.
Aside from this, the New Zealand docket featured the Performance of Services Index (PSI), which rose sharply by 58.6, exceeding estimates and the previous month’s reading. According to the report, significant gains were witnessed in new activity/sales and order/business.
An absent New Zealand economic docket will leave traders leaning on US data. The US calendar will reveal Building Permits alongside Housing Starts
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