The New Zealand dollar retreated slightly following stronger-than-expected US CPI, with traders eyeing upcoming RBNZ inflation expectations.
The New Zealand dollar dipped against the US dollar on Tuesday, paring earlier gains after US inflation data exceeded expectations. NZD/USD traded in a volatile range, peaking during Asian and early European sessions before dropping to a low near 0.5935 mid-session, then partially recovering into New York trading hours.
The move followed the release of US consumer price index figures, which reinforced concerns about persistent inflation. Market participants are now focusing on the Reserve Bank of New Zealand’s quarterly survey of inflation expectations, due later this week, for clues on future monetary policy.
The pair settled marginally lower for the session, reflecting cautious sentiment ahead of key economic data.