The post NZD/USD inches higher to near 0.6100 due to dovish Fedspeak appeared on BitcoinEthereumNews.com.

NZD/USD gains ground as dovish comments from Fed officials raise speculations of rate cuts. Fed Chair Jerome Powell said that the central bank is getting back on the disinflationary path. The economic slowdown in China, a major trade partner, poses a headwind for the New Zealand Dollar. NZD/USD appreciates for the second successive session as the US Dollar (USD) struggles due to the escalated speculations of Federal Reserve (Fed) reducing interest rates in 2024. The NZD/USD pair trades around 0.6080 during the European trading hours on Wednesday. The Greenback could limit its downside as US Treasury yields improve with 2-year and 10-year Treasury bonds standing at 4.75% and 4.43%, respectively, at the time of writing. Traders will be looking for further direction from the US ADP Employment Change, ISM Services PMI for June, and the FOMC Minutes, all of which are scheduled for release later on Wednesday. As per Reuters, Federal Reserve (Fed) Chair Jerome Powell’s somewhat dovish remarks on Tuesday. Powell said that the Fed is getting back on the disinflationary path. Additionally, Chicago Federal Reserve Bank President Austan Goolsbee cautioned on Tuesday during an interview with CNBC, stating, “I see some warning signs that the real economy is weakening.” On the Kiwi’s front, the Services Purchasing Managers’ Index (PMI) in China, a major trading partner, fell to 51.2 in June from 54.0 in May, according to the latest data released by Caixin on Wednesday. The market had forecast a figure of 53.4 for the period. This decline adds to concerns about a slowdown in the world’s second-largest economy and poses a headwind for the New Zealand Dollar (NZD). The Reserve Bank of New Zealand (RBNZ) is set to deliver an interest rate decision next week after maintaining borrowing costs at 5.5% for the seventh consecutive meeting in May. Expectations that…

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Filed under: News - @ July 3, 2024 11:24 am