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NZD/USD holds positive ground near 0.6130 in Tuesday’s early Asian session.  The New Zealand central bank is expected to keep policy unchanged at its July meeting on Wednesday.  Rising Fed rate cut bets are likely to weigh on the US Dollar.  The NZD/USD pair trades on a stronger note around 0.6130 on Tuesday during the early Asian trading hours. The US Dollar (USD) consolidates as traders await the Federal Reserve’s (Fed) Jerome Powell’s testimony on Tuesday ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.  The RBNZ is expected to keep the Official Cash Rate (OCR) unchanged at 5.50% at its July meeting on Wednesday, despite signs of weaker economic activity in New Zealand. Traders will take more cues from the Monetary Policy Statement. A hawkish stance by the RBNZ might support the New Zealand Dollar (NZD) in the near term.  On the other hand, the growing speculation that the US Fed will cut the interest rate sooner than expected this year exerts some selling pressure on the Greenback. According to the CME FedWatch tool, traders are now pricing in nearly 76% odds of Fed rate cuts in September, up from 64% recorded a week ago.  On the US docket, the Consumer Price Index (CPI) data for June might offer some hints about the inflation trajectory in the US. The US CPI inflation is forecast to drop to 3.1% YoY in June from 3.3% in May, while core inflation is projected to remain steady at 3.4% YoY in the same reported period. Any signs of softer inflation in the US might drag the USD lower and create a tailwind for the NZD/USD pair.  New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its…

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Filed under: News - @ July 9, 2024 1:24 am