NZD/USD holds below 0.6000 following the Chinese CPI, PPI data


  • NZD/USD edges lower to 0.5980 after the softer Chinese inflation report on Thursday. 
  • Chinese CPI rose 0.1% YoY in March, compared to a 0.7% rise in February and the consensus of 0.4% increase.
  • The strong US economy and elevated inflation triggered the Federal Reserve (Fed) to delay cutting interest rates this year.

The NZD/USD pair loses around 0.5980 on Thursday during the Asian trading hours. The Chinese Consumer Price Index (CPI) was softer than estimated in March, while the Producer Price Index (PPI) was in line with expectations. The pair moves little after Chinese inflation data, and the attention will shift to the US PPI for March, due later on Thursday.

The latest key Chinese data from the National Bureau of Statistics of China indicated easing inflation in the world’s second-largest economy. China’s Consumer Price Index (CPI) rose 0.1% YoY in March, compared to a 0.7% rise in February and the consensus of a 0.4% increase. On a monthly basis, Chinese CPI inflation arrived at -1.0% MoM in March versus 1.0% prior, below the 0.5% decline estimated. 

Finally, China’s Producer Price Index (PPI) fell 2.8% YoY in March, compared with a 2.7% decline in the previous reading, beating market expectations in the reported period. Concerns over slowing economic growth in China have grown in recent months and the softer inflation data raises concerns about uncertain economic prospects, which might cap the upside of the China-proxy New Zealand Dollar (NZD) against the USD. 

On Wednesday, the Reserve Bank of New Zealand (RBNZ) maintained its Official Cash Rate (OCR) at 5.5% for the sixth consecutive meeting as widely expected. The RBNZ noted that the monetary policy will remain restrictive to maintain downward pressure on inflation. Some economists perceived this move as dovish as New Zealand's economy has entered a technical recession and consumer confidence has declined.

On the other hand, the robust US economy and elevated inflation could convince the Federal Reserve (Fed) to cut interest rates this year. This, in turn, provides some support to the Greenback. According to the CME's FedWatch tool, financial markets now see a 66% likelihood of an interest rate cut at the September meeting. 

NZD/USD

Overview
Today last price 0.5981
Today Daily Change 0.0006
Today Daily Change % 0.10
Today daily open 0.5975
 
Trends
Daily SMA20 0.6023
Daily SMA50 0.6087
Daily SMA100 0.6138
Daily SMA200 0.6067
 
Levels
Previous Daily High 0.6079
Previous Daily Low 0.5966
Previous Weekly High 0.6047
Previous Weekly Low 0.5939
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.6009
Daily Fibonacci 61.8% 0.6036
Daily Pivot Point S1 0.5934
Daily Pivot Point S2 0.5894
Daily Pivot Point S3 0.5821
Daily Pivot Point R1 0.6047
Daily Pivot Point R2 0.612
Daily Pivot Point R3 0.616

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

Australian Dollar appreciates despite stronger US Dollar, PMI awaited

Australian Dollar appreciates despite stronger US Dollar, PMI awaited

The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions. 

AUD/USD News
Japanese Yen remains on the front foot against USD, bulls seem non-committed

Japanese Yen remains on the front foot against USD, bulls seem non-committed

The Japanese Yen (JPY) attracts some buyers for the second straight day on Friday amid reviving bets for more interest rate hikes by the Bank of Japan (BoJ), though it lacks any follow-through.

USD/JPY News
Gold advances to near two-week high, eyes $2,700 on geopolitical tensions

Gold advances to near two-week high, eyes $2,700 on geopolitical tensions

Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session. Intensifying Russia-Ukraine tensions force investors to take refuge in traditional safe-haven assets and turn out to be a key factor underpinning the precious metal.

Gold News
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time. 

Read more
A new horizon: The economic outlook in a new leadership and policy era

A new horizon: The economic outlook in a new leadership and policy era

The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures