NZD/USD is piercing 0.6300 resistance ahead of the US PCE Prices Index

• The New Zealand Dollar bounces up and heads to levels beyond 0.6300.
• The US Dollar remains on the defensive following downbeat US GDP data on Thursday.
• Investors await the release of the US PCE inflation to assess the timing of the Fed's pivot.

The Kiwi has resumed its uptrend on Froday´s European morning session, to explore levels beyond 0.6300. The US Dollar is trading lower across the board ahead of the release of November´s PCE Prices Index data.

Data released on Thursday showed that the US economy grew slower than previously thought in the third quarter. The Q3 GDP was revised down to a 4.9% yearly growth from the previous 5,2% estimation, with manufacturing and inflation data showing lower-than-expected readings.

These figures cement investors’s view of an economic slowdown ahead and boost hopes for Fed cuts in 2024. In this scenario, the focus is on the release of US PCE Prices Index, the Fed's favourite inflation reading for more info about the timing of the US central bank´s easing plans.

PCE Inflation is expected to have remained flat in November, with the yearly rate declining below the 3% level for the first time in three years. The Core PCE, which strips out the impact of seasonal prices from food and energy is seen 0.2% up in the month and a decline, to 3.3% from 3.5% in October.

Technical levels to watch