NZD/USD consolidates near 0.6250 post intraday gains, US inflation awaited
|- NZD/USD snaps its two-day losing streak ahead of US inflation data.
- Market expects an increase in both monthly and yearly US CPI figures.
- New Zealand Building Permits declined by 10.6%, marking a 15-month low.
NZD/USD advances to near 0.6250 during the European session on Thursday. The NZD/USD pair receives upward support due to the improved market sentiment ahead of the inflation data from the United States (US).
Later in the North American session, the Consumer Price Index (CPI) data for December in the United States will be revealed. Forecasts suggest an increase in both the monthly and yearly CPI, with expectations of a 0.2% rise in the monthly figure and a 3.2% increase in the yearly figure. Concurrently, Core inflation on a year-over-year basis is anticipated to ease at 3.8%, while the month-over-month change is projected to remain steady at 0.3%.
Moreover, market participants price in the five rate cuts by the US Federal Reserve (Fed) in the year 2024, which puts pressure on the Greenback. The US Dollar Index (DXY) remains subdued, influenced by softer US Treasury yields.
New Zealand's primary housing market indicator revealed a decrease in the issuance of permits for new construction projects in the country. In November 2023, the seasonally adjusted Building Permits (MoM) witnessed a substantial decline, plummeting by 10.6%, marking a 15-month low compared to the previous reading, which showed an 8.5% increase.
However, the positive Consumer Confidence and Business Confidence data in November have improved the market sentiment that the Reserve Bank of New Zealand (RBNZ) will uphold a hawkish stance by abstaining from any rate cuts in the upcoming meeting. This has been contributing to a favorable outlook for the New Zealand Dollar.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.