NZD/USD extends upside near 0.6200 amid softer US CPI, hawkish hold by Fed


  • NZD/USD trades in positive territory for the fourth consecutive day near 0.6195 on Thursday. 
  • Fed held interest rates steady at its June meeting but revised its outlook to one rate cut in 2024. 
  • The hawkish stance of the Reserve Bank of New Zealand’s (RBNZ) continues to support the Kiwi against the USD. 

The NZD/USD pair extends the rally around 0.6195 despite the weaker US Dollar (USD) on Thursday during the early Asian session. The softer-than-expected US Consumer Price Index (CPI) inflation report in May has dragged the USD Index (DXY) lower to 104.25, but the hawkish hold by the Federal Reserve (Fed) helped the DXY to regain some composure.

Inflation in the United States cooled more than expected in May, the US Bureau of Labor Statistics (BLS) showed on Wednesday. The Consumer Price Index rose 3.3% YoY in May, compared to the previous reading and expectations of 3.4%. On a monthly basis, the CPI figure held flat in May, the first time since July 2022, compared to a 0.3% gain in April.

The core CPI, which excludes volatile food and energy prices, rose 3.4% YoY in May, compared to a 3.6% rise in April and the estimation of 3.5%. On a monthly basis, the core CPI increased 0.2% MoM in May. 

The softer CPI report has boosted chances for Fed cuts this year and exerted some selling pressure on the USD. Investors are now pricing in a 73% chance of a rate cut from the Fed in September, up from 53% before the CPI data was released, according to the CME FedWatch tool.

Apart from this, the Fed held interest rates steady at their current range of 5.25% to 5.5% at its June meeting on Wednesday, as widely expected by market players. Fed Chair Jerome Powell said that the restrictive stance on monetary policy is having the effect on inflation that central bankers had hoped to see, but the Fed will wait to see sufficient progress. The Greenback recovers some lost ground following the hawkish hold of the Fed. 

On the other hand, China’s CPI inflation remained steady in May at 0.3% YoY, missing expectations for a 0.4% growth in the reported period. Meanwhile, China’s Producer Price Index (PPI) declined 1.4% YoY in May from the previous reading of a 2.5% drop, above the market forecast of a 1.5% decrease. However, the mixed Chinese economic data had little impact on the New Zealand Dollar (NZD), even though China is New Zealand's biggest trading partner. 

The hawkish stance of the Reserve Bank of New Zealand (RBNZ) continues to underpin the Kiwi and create a tailwind for the NZD/USD pair for the time being. The New Zealand central bank is concerned about sticky domestic inflation and has an increased chance of a future hike, while the RBNZ is expected to maintain its current policy stance until at least mid-2025.

NZD/USD

Overview
Today last price 0.6185
Today Daily Change -0.0001
Today Daily Change % -0.02
Today daily open 0.6186
 
Trends
Daily SMA20 0.6139
Daily SMA50 0.6041
Daily SMA100 0.6068
Daily SMA200 0.6058
 
Levels
Previous Daily High 0.6222
Previous Daily Low 0.6122
Previous Weekly High 0.6216
Previous Weekly Low 0.6101
Previous Monthly High 0.6171
Previous Monthly Low 0.5875
Daily Fibonacci 38.2% 0.6184
Daily Fibonacci 61.8% 0.616
Daily Pivot Point S1 0.6131
Daily Pivot Point S2 0.6077
Daily Pivot Point S3 0.6032
Daily Pivot Point R1 0.6231
Daily Pivot Point R2 0.6277
Daily Pivot Point R3 0.6331

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
XM
Read review
Moneta Markets
Read review

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Extra gains need to clear 0.6400

AUD/USD: Extra gains need to clear 0.6400

AUD/USD rose for the third day in a row, approaching the key 0.6400 resistance on the back of the acute pullback in the US Dollar amid mounting recession concerns and global trade war fear.

AUD/USD News
EUR/USD: Powell and the NFP will put the rally to the test

EUR/USD: Powell and the NFP will put the rally to the test

EUR/USD gathered extra steam and advanced to multi-month peaks near 1.1150, although the move fizzled out somewhat as the NA session drew to a close on Thursday.

EUR/USD News
Gold holds positive ground above $3,100, all eyes on US NFP data

Gold holds positive ground above $3,100, all eyes on US NFP data

Gold price recovers some lost ground to near $3,115 during the late American session on Thursday after facing some profit-taking in the previous session. Escalating concerns over a global trade war and ongoing geopolitical risks boost the Gold price, a traditional safe-haven asset. 

Gold News
Ethereum: Short-term holders may not impact ETH's price, Pectra mainnet upgrade set for May 7

Ethereum: Short-term holders may not impact ETH's price, Pectra mainnet upgrade set for May 7

Ethereum declined by 3% on Thursday as market participants continued to react to President Donald Trump's announcements regarding reciprocal tariffs. However, the selling pressure may not persist since most ETH short-term holders already sold their assets in March.

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025