NZD/USD moves above 0.6100, eyes on US Core PCE

NZD/USD halts its losing streak ahead of the release of US Core PCE.
The New Zealand Dollar may face challenges as the 10-year government bond yield has fallen below 4.85%.
The hawkish remarks of the Fed officials helped the US Dollar to hold ground.

Akhtar Faruqui FXStreet

NZD/USD breaks its three-day losing streak, trading around 0.6130 during the European session on Friday. The New Zealand Dollar (NZD) may face a challenge as the 10-year government bond yield fell below 4.85%, retreating from one-month highs.

The Reserve Bank of New Zealand (RBNZ) has raised its forecast for a peak in interest rates and delayed the timing for any rate cut. The RBNZ kept its cash rate at a 15-year high of 5.5%, indicating that restrictive policy needs to be maintained longer to ensure inflation returns to the 1-3% target range.

On Thursday, New Zealand Finance Minister Nicola Willis stated that the Treasury sees inflation falling to below 3% in Q3 and easing to 2% around 2026. The New Zealand treasury sees NZ GDP contracting in H1 2024, and growth in H2 2024, as per the official transcript from the New Zealand Government's website.

On the USD front, the US Gross Domestic Product (GDP) Annualized for the first quarter was revised lower to 1.3% from 1.6%. Additionally, US weekly Initial Jobless Claims for the week ending on May 24 rose to 219,000 from the previous week's 216,000, slightly exceeding the market consensus of 218,000.

Investors are awaiting the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, which will be released on Friday. If the data continues to soften, it could reignite the debate over potential rate cuts in September, weakening the US Dollar and underpinning the NZD/USD pair.

(This story was corrected on May 31 at 09:30 GMT to say, in the last paragraph, that the pair analyzed is NZD/USD and not Silver.)

NZD/USD

Overview
Today last price	0.6127
Today Daily Change	0.0012
Today Daily Change %	0.20
Today daily open	0.6115

Trends
Daily SMA20	0.6077
Daily SMA50	0.6008
Daily SMA100	0.6065
Daily SMA200	0.6047

Levels
Previous Daily High	0.6132
Previous Daily Low	0.6088
Previous Weekly High	0.6153
Previous Weekly Low	0.6083
Previous Monthly High	0.6079
Previous Monthly Low	0.5851
Daily Fibonacci 38.2%	0.6105
Daily Fibonacci 61.8%	0.6115
Daily Pivot Point S1	0.6091
Daily Pivot Point S2	0.6068
Daily Pivot Point S3	0.6047
Daily Pivot Point R1	0.6135
Daily Pivot Point R2	0.6156
Daily Pivot Point R3	0.6179

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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