- NZD/USD grapples to gain ground after retreating from a five-month high at 0.6298.
- Improved US data showed positive signs for the US economy, providing support for USD.
- Investors await US GDP data for further impetus on the US economy.
NZD/USD holds its position below 0.6250 during the early European hours on Thursday, struggling to retrace its recent losses recorded on Wednesday. The NZD/USD pair pulled back from the five-month high at 0.6298 reached in the previous session, which could be attributed to the improved economic data from the United States (US).
A rebound in existing home sales and a substantial increase in consumer confidence are both positive signs for the US economy. The US Existing Home Sales Change indicated a notable monthly rate increase of 0.8% in November, swinging from the previous decline of 4.1%. While CB Consumer Confidence experienced substantial growth in December, rising from 101.0 to 110.07.
The decline in the US Dollar Index (DXY) despite higher Treasury yields suggests that investors are keeping a close eye on the Federal Reserve's stance. It seems like the dovish sentiment regarding the interest rate trajectory is influencing market speculation. The DXY trades lower around 102.40, with the 2-year and 10-year yields on US bond coupons bidding at 4.38% and 3.88%, respectively, by the press time.
On the Kiwi side, On Wednesday, the improved Consumer Confidence data contributed support to underpinning the New Zealand Dollar (NZD) against the US Dollar (USD). The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr's cautious approach and acknowledgment of the journey ahead, particularly with high inflation levels, reflect the complexity of navigating economic landscapes.
On Thursday, Kiwi Credit Card Spending (YoY) showed an increase of 3.3% in November, versus the 2.8% drop in October. On the United States docket, investors await the US Gross Domestic Product Annualized (Q3), Initial Jobless Claims, and the Philadelphia Fed Manufacturing Survey.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further gains need more conviction
AUD/USD reversed two-daily pullbacks in a row on Tuesday, staging a decent comeback from Monday’s troughs near 0.6220 to the boundaries of the 0.6300 hurdle propped up by the RBA hawkish hold and firm data from Chinese business activity.
EUR/USD remains offered below 1.0800 ahead of “Liberation Day”
EUR/USD came under extra downside pressure on Tuesday, returning to the sub-1.0800 region on the back of tepid gains in the US Dollar and rising caution prior to Trump’s announcements on Wednesday.
Gold nears $3,100 as fears receded
Gold is easing from its fresh record high near $3,150 but remains well supported above the $3,100 mark. A generalised pullback in US yields is underpinning the yellow metal, as traders stay on the sidelines awaiting clarity on upcoming US tariff announcements.
US Government to conclude BTC, ETH, XRP, SOL, and ADA reserves audit next Saturday
Bitcoin price rose 3% on Tuesday, as MicroStrategy, Metaplanet and Tether all announced fresh BTC purchase. However, BTC price is likely to remain volatile ahead of the anticipated disclosure of U.S. government crypto holdings, which could fuel speculation in the coming days.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.