NZD/USD REMAINS ON THE DEFENSIVE BELOW 0.6100 AHEAD OF US RETAIL SALES DATA
- NZD/USD trades on a softer note around 0.6075 in Tuesday’s early Asian session.
- New Zealand inflation data is expected to slow more than central bank expects in Q2, paving the way for rate cuts.
- Traders raise their bets on Fed rate cuts in September.
The NZD/USD pair remains on the defensive near 0.6075 during the early Asian session on Monday. The weaker Chinese economic data and modest rebound of the US Dollar (USD) continue to undermine the pair. The US Retail Sales for June will be in the spotlight on Tuesday. The attention will shift to the New Zealand Consumer Price Index (CPI) inflation data, which is due on Wednesday.
New Zealand CPI inflation data is expected to slow more than the Reserve Bank of New Zealand (RBNZ) expects in the second quarter, paving the way for interest-rate cuts. The annual CPI is estimated to show an increase of 3.5% in Q2, compared to the previous reading of 4.0%. On a quarterly basis, the CPI is forecast to rise 0.6% QoQ in Q2. “For easing to begin in August, we would likely need to have seen a significant broad-based downside surprise in the Q2 CPI on 17 July,” Kelly Eckhold, Westpac’s chief economist, said.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.