• NZD/USD trades higher as the US Dollar takes a breather.
• Downbeat China’s CPI had no impact on the Kiwi pair.
• RBNZ’s inflation report contributed to pressure on the NZD.

NZD/USD trades higher near 0.5930 during the Asian session on Thursday, rebounding from the weekly lows as the US Dollar took a breather. Moreover, China's mixed data had a neutral impact on the Kiwi Dollar (NZD).

Chinese Consumer Price Index (CPI) recorded a yearly decline of 0.2% in October, slightly exceeding the expected drop of 0.1%. Meanwhile, the Producer Price Index (YoY) experienced a decrease of 2.6%, performing slightly better than the anticipated 2.7% decline.

The Kiwi pair experiences pressure as the potential for a pessimistic global economic outlook looms large. This is particularly impactful for New Zealand, a significant exporter of commodities. Additionally, the inflation report by the Reserve Bank of New Zealand (RBNZ) contributed to the weakening of the NZD/USD pair. The report conveyed a prevailing sentiment indicating an anticipated decline in prices, potentially attributed to an economic slowdown and reduced demand for goods and services.

The US Dollar Index (DXY) trades lower around 105.50, marking the second consecutive day of losses. The US Dollar (USD) weakens as downbeat US Treasury yields take their toll. Investors seek insights from Federal Reserve Chair Jerome Powell, scheduled to participate in a panel discussion later today.

Despite resistance from Fed officials against the idea of lowering interest rates, the Greenback faces challenges. Fed Governor Michelle Bowman has indicated that the central bank is considering future increases in short-term interest rates, adding a layer of uncertainty. In contrast, Neil Kashkari, President of the Minnesota Fed, expresses skepticism about whether the central bank has raised rates enough, pointing to the economy's resilience as a key factor shaping his perspective.