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

 

 

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