NZD/USD remains on the defensive below the mid-0.6100s, firmer US PPI boosts US Dollar

Source Fxstreet
  • NZD/USD loses ground near 0.6125 amid the firmer USD.
  • Strong US economic data strengthened the case for a delay in the Fed rate cuts.
  • The New Zealand’s Business NZ PMI arrived at 49.3 in February vs. 47.3 prior.

The NZD/USD pair trades on a weaker note below the mid-0.6100s during the early Asian session on Friday. The downtick of the pair is driven by the strong US Producer Price Index (PPI) data. Meanwhile, the USD Index (DXY) edges higher to fresh multi-session peaks past the 103.00 barrier. NZD/USD currently trades around 0.6125, down 0.09% on the day.

On Thursday, US February Retail Sales rose 0.6% MoM from a downwardly revised -1.1% in January, worse than the expectations of a 0.8% m/m rise. The Retail Sales Control Group was flat at 0% MoM, compared to the previous reading of a 0.3% MoM decline. Furthermore, the February PPI came in better than estimated, rising 0.6% MoM in February from 0.3% MoM in January. The Core PPI figure climbed 0.3% MoM versus a 0.5% gain in January.

The upbeat US economic data followed a rise surprise in the CPI inflation report earlier this week, raising worries about disinflationary momentum in the US. The data also suggest the FOMC will maintain a cautious approach and need to see further data before lowering the interest rate. The possibility of a delay in the Federal Reserve's (Fed) monetary easing cycle boosts the Greenback and

The latest data from Business NZ showed that New Zealand’s Business NZ Performance of Manufacturing Index (PMI) came in at 49.3 in February versus 47.3 prior. The figure showed signs of improvement but was still in the contraction zone. This, in turn, continues to weigh on the Kiwi against the US Dollar.

Moving on, traders will focus on US Industrial Production and the preliminary Michigan Consumer Sentiment, due on Friday. Next week, the FOMC monetary policy meeting will be in the spotlight. Traders will take cues from the data and find trading opportunities around the NZD/USD pair.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
Sep 15, Tue
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
Author  Suzie
Yesterday 08: 40
Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
placeholder
Dow drops 631 points as the Fed hikes — but futures are rebounding: what's next for US stocks?The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
Author  Irene Q.
8 hours ago
The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
8 hours ago
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Related Instrument
goTop
quote