- NZD/USD trades in positive territory for the second consecutive day above the mid-0.6200s on Monday.
- The US labor data on Friday helped weaken the case for rate cuts from the Federal Reserve (Fed).
- The stronger Chinese economic data last week has lifted the New Zealand Dollar (NZD).
The NZD/USD pair gains traction during the early Asian session on Monday. The uptick of the pair is bolstered by the softer US Dollar (USD) across the broad. The US inflation data, as measured by the Consumer Price Index (CPI) on Thursday, might offer hints about additional evidence of price pressures. At press time, NZD/USD is trading at 0.6256, gaining 0.19% on the day.
The upbeat US labor data on Friday helps weaken the case for rate cuts from the Federal Reserve (Fed). Traders have moved to bet on five or six rate cuts by the Fed over the course of the year. They are now pricing in a 75% odds of the first cut in March, having fully priced in such a move at the end of last year. US Nonfarm Payrolls (NFP) increased by 216,000 jobs in December from 173,000 in November, above the market consensus of 170,000, the US labor data showed on Friday.
Furthermore, the Unemployment Rate was unchanged at 3.7%. The Average Hourly Earnings climbed 0.4% MoM, better than 0.3% expected, while the annual figure came in at 4.1 YoY in December versus 4.0% in the previous reading, above the consensus of 3.9%.
On the Kiwi front, the stronger-than-expected Chinese economic data last week has boosted the China-proxy New Zealand Dollar (NZD) and acts as a tailwind for NZD/USD. Traders will take more cues from the Chinese data, due later this week. The December Chinese Producer Price Index (PPI) and Consumer Price Index (CPI) will be released on Friday. The upbeat data could provide more support for the Kiwi against the US Dollar.
Market players will focus on the New Zealand Building Permits on Tuesday ahead of the US CPI reports on Thursday. On Friday, the attention will shift to the Chinese CPI and PPI figures. Traders will take cues from these reports and find trading opportunities around the NZD/USD pair.
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.
Recommended content
Editors’ Picks
AUD/USD moves away from multi-year low amid easing fears about Trump's tariff plans
AUD/USD builds on the overnight bounce from its lowest level since April 2020 as reports of gradual Trump tariffs boost investors' sentiment and weigh on the USD. Bets that the Fed will pause its rate-cutting cycle, the RBA's dovish shift, China's economic woes and geopolitical risks act as a headwind for the Aussie.
EUR/USD scrambles to recover ground after fresh test of two-year lows
EUR/USD continued to explore the bearish side of the charts on Monday, declining into the 1.0200 handle for the first time since late 2022, etching in a fresh 26-month low before staging half-hearted recovery later in the day.
Gold holds above $2,660 with a soft tone
Prices of Gold trade on the defensive and reverse four consecutive daily pullbacks in response to extra improvement in the US Dollar as well as investors' reassessement of just one (or none at all) interest rate cut by the Fed for the current year, particularly following Friday's Nonfarm Payrolls prints.
Crypto Today: BTC price plunges 4%, Litecoin X account hacked; traders position for US inflation report
The cryptocurrency sector plunged by 5% on Monday, with over $148 billion wiped off the aggregate market capitalization. Bitcoin price dropped below $90,600 for the first time in 24 days, as traders anticipate the upcoming US CPI report.
Bitcoin falls below $92,000 as exchanges show overheating conditions
Bitcoin (BTC) continues its ongoing correction, falling below $92,000 on Monday after declining almost 4% last week. CryptoQuant data shows that BTC is overheating in exchanges and suggests further decline ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.