NZD/USD gains ground near 0.6118 amid the softer USD, solid New Zealand Q4 labor market data.
The Reserve Bank of New Zealand could raise interest rates again this month following strong labor market numbers.
Fed’s Kugler said that inflation is showing solid signs of slowing down, but she is not yet prepared to begin lowering rates.
The NZD/USD pair holds positive ground above 0.6100 during the early Asian session on Thursday. The solid New Zealand Q4 labor market data amid re-pricing odds of further Reserve Bank of New Zealand (RBNZ) policy tightening, has boosted the New Zealand Dollar (NZD). NZD/USD currently trades around 0.6118, gaining 0.16% on the day.
The New Zealand labor market data for the fourth quarter (Q4) came in stronger than expected. The nation’s Unemployment Rate rose from 3.9% to 4.0%, below the forecast of 4.2%. This data might convince the RBNZ about the policy outlook, and the RBNZ could raise interest rates again this month following strong labour market numbers. This, in turn, underpins the Kiwi and might cap the downside of the NZD/USD pair in the near term.
Furthermore, the latest data from the National Bureau of Statistics of China revealed that the Chinese Consumer Price Index (CPI) fell 0.8% YoY in January from a 0.3% drop in the previous reading, weaker than the market expectation of 0.5%. On a monthly basis, the CPI figure rose to 0.3% MoM in January from 0.1% in December. Meanwhile, the Producer Price Index (PPI) fell 2.5% YoY in January from a 2.7% fall in December, beating expectations for a 2.6% decline in the reported period.
On the USD’s front, Federal Reserve (Fed) Governor Adriana Kugler said on Wednesday that inflation is showing solid signs of slowing down, but she is not yet prepared to begin lowering interest rates. Meanwhile, Minneapolis Fed President Kashkari said that the Fed needs more time to get confidence on the inflation trajectory before beginning to cut rates. The hawkish remarks from Fed officials provide some support for the US Dollar (USD) and weigh on the NZD/USD pair.
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.
Hot
No comment on record. Start new comment.