The New Zealand Dollar weakens against the US Dollar ahead of key US inflation data and Fed signals.
NZD/USD slipped to 0.5960 in Asian trading on Wednesday, reversing modest prior gains as the US Dollar strengthened. The move comes ahead of the release of US Personal Consumption Expenditures data, the Federal Reserve’s preferred inflation gauge, which could influence monetary policy expectations.
Markets are also awaiting Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday for further clues on the September rate decision. Meanwhile, easing geopolitical tensions in the Strait of Hormuz may limit USD upside, as Iran and Oman discuss a joint maritime corridor.
The New Zealand Dollar could regain ground if the Reserve Bank of New Zealand delivers a 25-basis-point hike next week, as anticipated by traders.