NZDUSD reaches weekly low, falls below mid-0.5800s before US CPI.
For the second consecutive day, NZDUSD is falling amid persistent USD purchasing. A rising risk tone and declining US bond rates do nothing to help the pair. Investors are now anticipating the critical US CPI data for a new change in direction.
The NZDUSD pair is still under some selling pressure on Thursday for the second consecutive day, and it is falling away from the peak it reached earlier this week, which was the highest since September 19. Through the first part of the European session, the pair continues to fall, and in the last hour, it hits a new daily low below the mid-0.5800s.
The US Dollar continues to gather momentum after making a significant recovery from a multi-week low the day before, considered a major driver pushing the NZDUSD pair down. A repositioning trade in expectation of higher US consumer inflation numbers may cause a stronger USD movement. But any additional gains for the dollar may be limited by a slight decline in the rates on US Treasury bonds.
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