NZD/USD LOSES TRACTION BELOW 0.6150 AHEAD OF US NFP DATA
- NZD/USD edges lower near 0.6115 in Friday’s early Asian session.
- US Nonfarm Payrolls (NFP) data will be in the spotlight on Friday.
- The RBNZ is expected to hold its OCR steady at 5.5% next week.
The NZD/USD pair weakens to nearly 0.6115, snapping the two-day winning streak during the early Asian session on Friday. The release of US Nonfarm Payrolls (NFP) for June will take center stage on Friday, along with the speech by the Federal Reserve’s (Fed) John Williams.
The recent weaker-than-expected US economic data raised expectations that the Fed would start cutting the interest rate sooner than expected, which dragged the Greenback lower. Traders are now pricing in nearly 66% odds for a 25 basis points (bps) Fed rate cut in September, up from 58.2% last Friday, according to CME FedWatch Tool.
Meanwhile, the Minutes of the FOMC June monetary policy meeting showed that Fed officials lacked the confidence they needed to cut the interest rate. Additionally, most participants estimated that the current policy is restrictive but had opened the door for a rate hike
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