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The New Zealand Dollar extends its upside in Wednesday’s early Asian session.  The softer US Dollar and positive risk sentiment support NZD/USD.  Investors will focus on the first reading of US August S&P Global PMI on Wednesday.  The New Zealand Dollar (NZD) edges higher on Wednesday as the USD Index (DXY) extended its decline to near yearly lows. The improved risk sentiment after China rolled out further measures to support the real estate sector boosts the Kiwi as China is New Zealand’s largest trading partner. On the other hand, the dovish remarks from the Reserve Bank of New Zealand (RBNZ) after a surprise rate cut last week might limit the pair’s upside. Investors will keep an eye on the preliminary US S&P Global PMI for August, which is due on Wednesday. All eyes will be on Fed Chair Powell’s speech at the Jackson Hole symposium on Friday. Any dovish comments from Powell are likely to undermine the USD and create a tailwind for NZD/USD.   Daily Digest Market Movers: New Zealand Dollar remains strong amid a dovish Fed The People’s Bank of China (PBOC) decided to hold the one-year and five-year Loan Prime Rates (LPR) steady on Tuesday at 3.35% and 3.85%, respectively.  China implemented further measures to boost the real estate sector. At least 10 city governments in China have relaxed or scrapped new-home price guidelines to allow market demand to play a bigger role, per Bloomberg.  New Zealand’s Trade Balance arrived at NZD -$9.29B YoY in July versus $-9.5B prior. Exports decreased to $6.15B in July versus $6.17B in June, whereas Imports increased to $7.11B compared to $5.45B in previous readings. Federal Reserve (Fed) Governor Michelle Bowman said on Tuesday that she remains cautious about any shift in the policy because of what she sees as continued upside risks…

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Filed under: News - @ August 21, 2024 12:15 am