EUR/USD 1.14444
0.565%
Gold 4089.27
2.209%
Oil 79.885
2.687%
USD/JPY 161.785
-0.408%
GBP/USD 1.34215
0.569%
GBP/JPY 217.144
0.153%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
U.S. consumer prices fell for the first time in six years in June, and a key measure of underlying inflation remained essentially flat, easing pressure on the Federal Reserve to raise interest rates. According to data released Tuesday by the Bureau of Labor Statistics, the Consumer Price Index (CPI) fell 0.4% in May but rose 3.5% year-over-year. The core CPI, excluding food and energy, was unchanged in May but rose 2.6% year-over-year. The report indicated that the decline in gasoline prices in June provided some relief to consumers as the worst of the energy price shock triggered by the Iran war began to subside. Federal Reserve officials are likely to welcome the data ahead of their meeting at the end of the month; however, renewed tensions between the U.S. and Iran, leading to a rise in oil prices, could prolong the inflationary effects of the conflict. U.S. stock index futures rose and Treasury yields fell as investors reduced their bets on a July rate hike by the Fed. Data showed that core inflation was subdued, primarily due to falling prices for goods such as clothing and used cars. Motor vehicle insurance premiums also fell sharply.Following the release of the CPI data, both WTI and Brent crude oil prices remained relatively stable in the short term, trading at $79.76 per barrel and $85.5 per barrel, respectively.The yield on the two-year U.S. Treasury note fell 10 basis points to 4.18% on the day.Federal Reserve Chairman Warsh: Job growth is in line with labor force growth. The unemployment rate is low and has not changed much over the past year. Layoffs have been relatively few.Market pricing indicates that bets on a Fed rate hike this month have been lowered.

NZD/USD falls further below the 0.5800 level and nears the weekly low in response to USD strength

Daniel Rogers

Nov 03, 2022 18:09

 截屏2022-11-03 下午5.16.35.png

 

The 0.5835-0.5840 range attracts sellers on Thursday, as the NZD/USD pair declines for a second consecutive session. During the opening minutes of the European day, spot prices fall below the 0.5800 mark and appear poised to extend the overnight post-FOMC decline from the highest level since September 20.

 

In the preceding hour, the US dollar reversed an intraday fall and soared to a one-and-a-half-week high, which is regarded as the principal factor exerting downward pressure on the NZD/USD pair. Wednesday, the US central bank hinted at a future policy shift, but Fed Chair Jerome Powell dashed dovish hopes. Powell remarked that it was premature to consider a stop in the rate-hiking cycle and that the final rate will exceed expectations.

 

Powell's hawkish remarks indicate that the Fed will continue to raise interest rates to combat inflation. Recent increases in US Treasury bond yields continue to strengthen the dollar. Moreover, a reduced risk tone gives additional support for the safe-haven dollar and weighs on the risk-averse New Zealand dollar. Concerns about economic headwinds stemming from quickly rising borrowing prices and China's zero-COVID policy have a depressing effect on the market sentiment.

 

The underlying environment appears to overwhelmingly favor USD bulls, suggesting that the path of least resistance for the NZD/USD pair is down. Some selling below the weekly low, below 0.5775, will underline the negative outlook and pave the way for fresh near-term decline. Ahead of Friday's NFP report, market experts predict that the US ISM Services PMI will give early North American session impetus.


Suggestion