NZD/USD retreats from 0.6000 with the US Dollar picking up ahead of the PCE inflation release

• New Zealand Dollar retreats below 0.5950 after rejection at the 0.6000 psychological area.
• The USD is witnessing short-covering ahead of the US PCE Prices Index reading.
• Downbeat New Zealand's data have added bearish pressure on the Kiwi.

The New Zealand Dollar has been rejected at the 0.6000 psychological area and returned to 0.5950, as the US Dollar regains lost ground, with investors bracing for the release of April’s US PCE Price Index reading.
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The Dollar lost ground against its main peers earlier on Thursday, as a US federal court paused Wednesday’s sentence from the International Trade Court banning most of the trade tariffs introduced from April 2.

The decision from the Federal Court of Appeals has given a new twist to Trump’s chaotic trade policy, reactivating the “sell America” trade that has pushed the US Dollar Index about 3.5% lower in the last two months.

The Greenback, however, has found some support and is going through some short covering with investors closing some of their positions ahead of the US Personal Consumption Expenditures Prices Index.

PCE Inflation, the Federal Reserve’s inflation gauge of choice, is expected to show a minor increase in monthly inflation, with the yearly rate moderating further. Headline inflation is seen easing to 2.2% from 2.3%, with the Core PCE Prices Index down to 2.5% from the previous 2.6% reading.

Data from New Zealand has failed to support the Kiwi, as the Business sentiment released on Thursday deteriorated to its lowest levels of the last 10 months. Furthermore, RBNZ acting Governor Hawkesby warned about growth headwinds in the near-term, adding pressure on the NZD.