The post NZD/USD falls to near 0.6150 after breaking its winning streak, US PPI awaited appeared on BitcoinEthereumNews.com.

NZD/USD loses ground as US Dollar rises due to the Fed’s hawkish hold on Wednesday. The rebound in the US Treasury yields support the US Dollar. Electronic Card Retail Sales dropped by 1.1% MoM in May as compared to April’s 0.4% decrease. NZD/USD halts its three-day winning streak, trading around 0.6170 during the early European session on Thursday. The decline of the NZD/USD pair could be attributed to the advancement of the US Dollar (USD) after the hawkish hold from the US Federal Reserve (Fed) on Wednesday. Investors await the US weekly Initial Jobless Claims and Producer Prices Index (PPI) on Thursday to gain further impetus on economic conditions in the United States (US). The Federal Open Market Committee (FOMC) left its benchmark lending rate in a range of 5.25%–5.50% for the seventh time in a row at its June meeting on Wednesday, as widely expected. Fed Chair Jerome Powell said in a press conference following the Fed’s decision that the restrictive stance on monetary policy is having the expected effect on inflation. “So far this year, we have not gained greater confidence on inflation to warrant a rate cut,” Powell added. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, edges higher to near 104.80, possibly supported by the rebound in the US Treasury yields. 2-year and 10-year yields on US Treasury bonds stand at 4.76% and 4.32%, respectively, at the time of writing. In New Zealand, Electronic Card Retail Sales dropped by 1.1% month-over-month in May, a steeper decline against April’s 0.4% decrease. However, on an annual basis, the decline was 1.6%, significantly less than the previous year’s 3.8% drop. The Reserve Bank of New Zealand (RBNZ) indicated that it has no plans to reduce rates in 2024, with any rate…

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Filed under: News - @ June 13, 2024 8:12 am