- Analytics
- News and Tools
- Market News
- NZD/USD crushed on a firmer US Dollar and hawkish US data
NZD/USD crushed on a firmer US Dollar and hawkish US data
- NZD/USD sent to the backfoot on hawkish US data.
- US Dollar firms on US PCE and rate hike outlook.
NZD/USD was pressured at the end of last week due to a late surge in the USD as demand for the currency took off, sending the DXY index through 105 in the wake of a stronger-than-expected US core PCE deflator.
This was the Fed’s preferred measure of inflation, and the data companies a slew of prior inflationary data outcomes from the US calendar over the past few weeks.
The data's reacceleration has sent shockwaves through US markets, which analysts at ANZ Bank explained ''which are now pricing in a 5.4% peak in the fed funds rate and are in the process of pricing out cuts in H2 2023.''
The analysts said that they've discussed this potential for some time, and it is now materialising. ''But while it speaks to a stronger-than-otherwise USD, unlike in 2022, the Fed isn’t outpacing all other central banks, and locally, risks are now tilted towards the RBNZ also having more work to do,'' the analysts argued. ''That may in time make the NZD more resilient to USD strength than other currencies, but that wasn’t evident overnight.''
Meanwhile, New Zealand Retail Sales for the fourth quarter came in at -0.6% vs the prior 0.4%. For the year, it arrived at -4%.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
