NZD/USD retreats to around 0.5940 on Wednesday at the time of writing, down 0.60% on the day.
The New Zealand Dollar (NZD) loses ground against the US Dollar (USD), which finds some support following the release of the latest United States (US) inflation data
The Bureau of Economic Analysis (BEA) reports that the Personal Consumption Expenditures (PCE) Price Index rises 3.7% YoY in July, unchanged from June but slightly above the 3.6% expected by markets. On a monthly basis, the index increases by 0.2%. The core PCE Price Index, which excludes volatile food and energy components and is an inflation gauge closely watched by the Federal Reserve (Fed), remains steady at 3.3% YoY, in line with expectations.
The core index also rises by 0.2% MoM. The slight upside surprise in headline inflation provides some support to the Greenback, as persistent price pressures could encourage the Fed to maintain a restrictive monetary policy stance. However, the reaction remains limited as the core measure delivers no surprise and the report does not appear to significantly alter expectations for the September meeting.