NZD/USD extends its downside above the 0.6000 mark, US PPI is in the spotlight

NZD/USD remains under pressure and finds support above the 0.6000 area on Friday.
The US Core CPI fell to 4.7% from 4.8%, Initial Jobless claims totaled 248,000.
Analysts anticipate that the Reserve Bank of New Zealand (RBNZ) will maintain rates at 5.50% in its August meeting.
Market players will monitor the US Producer Price Index (PPI), the University of Michigan (UoM) Consumer Confidence Survey.

Lallalit Srijandorn FXStreet

The NZD/USD pair attracts some sellers and edges lower to 0.6012, near the multi-month low heading into the early Asian session on Friday. Markets turn cautious ahead of the release of top-tier US data in the American session. The data could trigger volatility in NZD/USD later in the day.

The US Bureau of Labor Statistics (BLS) reported on Thursday that the US Consumer Price Index (CPI) rose to 3.2% YoY from 3% in June. The figure was below the market consensus of 3.3%. While the Core CPI figure, which excludes volatile food and energy prices, fell to 4.7% from 4.8%. Additionally, the US Initial Jobless Claims increased to 248,000, above the expectation of 230,000. In response to the data, the US Dollar reversed its course and strengthened against its rivals.

Apart from this, the Fed San Francisco President, Mary C. Daly, stated on Thursday that there is a lot more information to evaluate and that it is premature to project whether additional rate increases or a prolonged period of holding rates are required. This, in turn, caps the upside for the Kiwi and acts as a headwind for the NZD/USD pair.

On the Kiwi front, the New Zealand Inflation Expectations QoQ came in at 2.83% versus 2.79% prior. While the Business NZ PMI fell to 46.3 versus 49.4 expected. The majority of analysts, according to a recent Reuters poll, anticipate that the Reserve Bank of New Zealand (RBNZ) will maintain rates at 5.50%, a 14-year high, for the second consecutive meeting on August 16.

Meanwhile,the exacerbated trade war tensions between the US and China might exert pressure on the Kiwi, the proxy currency for the Chinese economy. That said, US President Joe Biden issued an executive order on Wednesday prohibiting new US investments in China in sensitive technologies. The US government intends to target only Chinese companies that generate more than 50% of their revenue from quantum computation and artificial intelligence (AI). However, the restrictions would apply to "narrow subsets" of the three domains, but the administration did not provide further details, and the proposal is available for public comment.

Looking ahead, market participants will closely watch the US Producer Price Index (PPI), due later in the day. The figure is expected to rise from 0.1% to 0.7% YoY. Also, the University of Michigan (UoM) Consumer Confidence Survey will be due in the American session. The data will be critical for determining a clear movement for the NZD/USD pair.

NZD/USD

Overview
Today last price	0.6009
Today Daily Change	-0.0012
Today Daily Change %	-0.20
Today daily open	0.6021

Trends
Daily SMA20	0.6172
Daily SMA50	0.6166
Daily SMA100	0.6186
Daily SMA200	0.6233

Levels
Previous Daily High	0.6118
Previous Daily Low	0.602
Previous Weekly High	0.6226
Previous Weekly Low	0.606
Previous Monthly High	0.6413
Previous Monthly Low	0.612
Daily Fibonacci 38.2%	0.6058
Daily Fibonacci 61.8%	0.6081
Daily Pivot Point S1	0.5988
Daily Pivot Point S2	0.5955
Daily Pivot Point S3	0.589
Daily Pivot Point R1	0.6086
Daily Pivot Point R2	0.6152
Daily Pivot Point R3	0.6185

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold picks up pace prior to the Fed; revisits $4,350

Gold sets aside two daily declines in a row, gathering some composure and revisiting the $4,350 zone per troy ounce amid decent gains on Wednesday. The precious metal’s recovery comes despite an acceptable advance in the US Dollar and declining US Treasury yields prior to the anticipated rate hike by the Fed.

XRP Price Forecast: XRP clings to 50-day EMA support after CLARITY Act setback

Ripple (XRP) trades lower around $1.28 on Wednesday, as investors broadly assess the impact of the failed United States (US) Senate vote on the CLARITY Act and the upcoming Federal Reserve (Fed) monetary decision. The remittance token has trimmed early-week gains that tagged highs around $1.50 on Monday and now holds key moving-average support.

Federal Reserve set to raise interest rate after five meetings on hold

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, following another pivotal meeting that could provide key insights into the monetary policy outlook heading into the end of the year.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.