The post NZD/USD struggles to attract any meaningful buyers, remains below 0.5900 ahead of US PCE appeared on BitcoinEthereumNews.com.

NZD/USD bounces off a nearly three-month low, albeit lacks any follow-through buying. A combination of factors undermines the safe-haven USD and lends support to the major. China’s economic woes cap any further gains ahead of the key US PCE Price Index data. The NZD/USD pair edges higher during the Asian session on Friday and for now, seems to have snapped a six-day losing streak to its lowest level since early May, around the 0.5880 region touched the previous day. Spot prices, however, struggle to build on the modest intraday strength beyond the 0.5900 round-figure mark as traders keenly await the crucial US inflation data before placing directional bets.  The US Personal Consumption Expenditures (PCE) Price Index is due for release later today and should provide fresh cues about the Federal Reserve’s (Fed) policy path. This, in turn, will play a key role in driving the US Dollar (USD) demand in the near term and provide some meaningful impetus to the NZD/USD pair. Heading into the key data risk, bets for an imminent start of the Fed’s rate-cutting cycle keep the USD bulls depressed below a two-week high touched on Wednesday and act as a tailwind for the currency pair.  Investors seem convinced that the US central bank will lower borrowing costs in September and are pricing in the possibility of two more rate cuts by the end of this year. This, to a larger extent, overshadows the upbeat US macro data released on Thursday, which showed that the world’s largest economy grew at a faster-than-expected pace during the second quarter of 2024. Adding to this, the US Initial Jobless Claims dropped to 235K in the week ending July 20 vs. 238K expected, though does little to impress the USD bulls. Apart from this, a generally positive tone around the equity…

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Filed under: News - @ July 26, 2024 5:24 am