The post NZD/USD falls to near 0.6200 due to diminishing dovish mood of Fed, China’s concerns appeared on BitcoinEthereumNews.com.

NZD/USD extends losses as traders expect that the Fed will not deliver a 50 basis points rate cut in September. Traders await the US ISM Manufacturing PMI on Tuesday ahead of upcoming US employment data. New Zealand’s Terms of Trade Index rose by 2.1% QoQ in Q2, swinging from a previous 5.1% decline. NZD/USD continues to lose ground for the third successive session, trading around 0.6200 during the Asian hours on Tuesday. The US Dollar (USD) receives support from diminishing odds of an aggressive interest rate cut by the US Federal Reserve rate in September. Traders await the ISM Manufacturing PMI data due later in the day. The focus will shift to upcoming US employment data, particularly the August Nonfarm Payrolls (NFP), for further insights into the potential timing and scale of Fed rate cuts. US Treasury yields continue to rise and provide support for the US Dollar, but its gains may be limited by growing expectations of a 25 basis point rate cut by the Fed in September. According to the CME FedWatch Tool, markets are nearly 70% confident of at least a 25 basis point (bps) rate cut by the Fed at its September meeting. In New Zealand, the Terms of Trade Index increased by 2.1% quarter-on-quarter in Q2, rebounding from a 5.1% decline in the previous quarter and surpassing market expectations of a 2.0% rise. Export prices saw a significant increase of 5.2% in the second quarter, recovering from a 0.3% decrease in the March quarter. Import prices also rebounded, rising by 3.1% after a sharp 5.1% drop in the prior period. New Zealand’s NZX 50 Index consolidates, hovering around 12,500, due to a lack of global drivers with Wall Street closed for Monday’s break. Traders assess July manufacturing PMI data from China, a key trading partner.…

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Filed under: News - @ September 3, 2024 4:14 am