NZD/USD finds support above the 0.6100 mark, eyes on US PMI data

The NZD/USD pair remains on the defensive above the 0.6100 mark during the early Asian session on Thursday. The Federal Reserve (Fed) left rates unchanged at its January meeting and opened the door to rate cuts. However, Fed Chairman Jerome Powell indicated that the rate cut in March is too early. The pair currently trades around 0.6115, adding 0.03% on the day.  

Following the Fed interest rate decision, the US central bank maintained its benchmark interest rate on Wednesday in a range of 5.25%–5.50% and stated that it won't begin lowering the target range until it sees further progress on inflation moving sustainably toward the 2% target. Investors had been anticipating a possible rate cut cycle at the March meeting, but Fed Chair Powell said that's probably not the most likely case. 

On the other hand, the Reserve Bank of New Zealand (RBNZ) targets maintaining inflation within the 1% to 3% range, with its focus on keeping future inflation around the 2% midpoint. With inflation easing, financial markets expect the Official Cash Rate (OCR) to be cut sooner rather than later, with three cuts already priced in this year.

Moving on, the January Chinese Caixin Manufacturing PMI, US weekly Initial Jobless Claims and ISM Manufacturing PMI will be due on Thursday. The attention will shift to US employment data on Friday, including Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings for January.