NZD/USD holds positive ground above 0.6000, eyes on US Jobless Claims
- NZD/USD trades in positive territory for three straight days on Thursday.
- House prices in New Zealand dropped marginally in October, while sales activity has been steadily increasing since 2022.
- US PPI declined 0.5% MoM in October vs. 0.4% prior, Retail Sales dropped by 0.1% from a fall of 0.3%.
The NZD/USD pair holds positive ground for the third consecutive day during the early Asian trading hours on Thursday. The stronger Chinese Industrial Production and Retail Sales on Wednesday boosted the China-proxy New Zealand Dollar (NZD). At press time, NZD/USD is trading around 0.6029, gaining 0.12% on the day.
The Reserve Bank of New Zealand (RBNZ) will have a monetary policy meeting on November 29. The market anticipates that RBNZ will leave the Official Cash Rate at 5.5% and signal the possibility of additional rate hikes next year. On Thursday, house prices in New Zealand dropped marginally in October, while sales activity has been steadily increasing since 2022.
On the other hand, traders have walked away from expectations for Federal Reserve (Fed) hikes and have priced in 50% odds of a rate cut by May 2024. This, in turn, weighs on the US Dollar (USD) and acts as a tailwind for the NZD/USD pair.
About the data, the US Producer Price Index (PPI) declined 0.5% MoM in October from a 0.4% rise in the previous reading, worse than the market estimation of a 0.1% increase. The annual PPI figure arrived at 1.3% in the same period from 2.2% in September. Finally, the Retail Sales dropped by 0.1% in October, against expectations of a fall of 0.3%.
Looking forward, the US weekly Initial Jobless Claims will be due on Thursday. On Friday, New Zealand’s Producer Price Index-Input for the third quarter (Q3) will be released. Traders will take cues from these figures and find trading opportunity around the NZD/USD pair.
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.
