NZD/USD rallies to 0.6160 as US Dollar weakens after steady US PCE Inflation report

Source Fxstreet
May 31, 2024 14:32
  • NZD/USD advances strongly to 0.6160 as the US Dollar slumps after US PCE Inflation grew as expected in April.
  • Stubbornly elevated US inflation would dent Fed rate-cut bets for September.
  • Investors shift focus to US ISM PMI and Employment data.

The NZD/USD pair soars to 0.6160 in Friday’s New York session. The Kiwi asset witnesses significant buying interest as the US Dollar weakens after the United States (US) Personal Consumption Expenditure Price Index (PCE) report for April showed that price pressures grew in-line with estimates.

Monthly and annual headline inflation grew expectedly by 0.3% and 2.7%, respectively. The core PCE inflation, which is Federal Reserve’s (Fed) preferred inflation gauge as it strips off volatile food and energy prices, rose by 0.2%, slower than the estimates and the former release of 0.3% on a month-on-month basis. However, annual core PCE Inflation rose expectedly by 2.8%.

Stubbornly elevated PCE inflation make unlikely for the Fed to start reducing interest rates from the September meeting. The scenario is generally favorable for the US Dollar, however, it is weak due to downwardly revised US Q1 Gross Domestic Product (GDP) data. Revised estimate for Q1 GDP shows that the economy expanded at a slower pace of 1.3% from the preliminary estimate of 1.6%.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down more than 0.3% around 104.40.

Next week, investors will focus on the Manufacturing and the Services PMI, which will be published by the Institute of Supply Management (ISM) and the Nonfarm Payrolls (NFP) for May.

The New Zealand Dollar remains firm even though China’s National Bureau of Statistics (NBS) reported that the Manufacturing and Non-Manufacturing PMI for May missed estimates. In this situation, the New Zealand Dollar faces pressure, being a proxy for China’s economic prospects.

NZD/USD

Overview
Today last price 0.6156
Today Daily Change 0.0041
Today Daily Change % 0.67
Today daily open 0.6115
 
Trends
Daily SMA20 0.6077
Daily SMA50 0.6008
Daily SMA100 0.6065
Daily SMA200 0.6047
 
Levels
Previous Daily High 0.6132
Previous Daily Low 0.6088
Previous Weekly High 0.6153
Previous Weekly Low 0.6083
Previous Monthly High 0.6079
Previous Monthly Low 0.5851
Daily Fibonacci 38.2% 0.6105
Daily Fibonacci 61.8% 0.6115
Daily Pivot Point S1 0.6091
Daily Pivot Point S2 0.6068
Daily Pivot Point S3 0.6047
Daily Pivot Point R1 0.6135
Daily Pivot Point R2 0.6156
Daily Pivot Point R3 0.6179

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Solana Empty Glasses: BEER Coin Fizzles 70% In Alleged Rug PullThe Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
Author  NewsBTC
The Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
goTop
quote