NZD/USD HOLDS COMFORTABLY ABOVE 0.6000 MARK; BULLS FLIRTS WITH MULTI-WEEK PEAK
- NZD/USD regains strong positive traction and draws support from a combination of factors.
- Reduced bets for a rate cut by RBNZ and a positive risk tone lend some support to the Kiwi.
- Dovish Fed expectations keep the USD bulls on the defensive and contribute to the move up.
- Investors now look to the RBNZ on Wednesday and the US inflation figures for a fresh impetus.
The NZD/USD pair attracts fresh buyers following an intraday dip to levels below the 0.6000 psychological mark and sticks to its intraday gains through the early part of the European session on Monday. Spot prices currently trade around the 0.6025 area, just a few pips below a three-week top touched on Friday, as traders look to this week's central bank event risk and the crucial US inflation figures for a fresh impetus.
The Reserve Bank of New Zealand (RBNZ) is scheduled to announce its policy decision on Wednesday. From the US, investors will confront the release of the Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday, which might influence expectations about the Federal Reserve's (Fed) policy path. This, in turn, will drive the US Dollar (USD) demand in the near term and provide some meaningful impetus to the NZD/USD pair.
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