NZD/USD hovers around 0.5930 ahead of US Initial Jobless Claims
- NZD/USD marked the low at 0.5903 since November, 2022.
- RBNZ’s decision to keep interest rates unchanged resulted in a weakening of the New Zealand Dollar.
- Investors await US data to gain a clear sight of Fed policy.
NZD/USD continues its losing streak and has marked the low at 0.5903 during the Asian session on Thursday, a level not seen since November, 2022. Currently, the spot trades around 0.5930. Stronger United States (US) data could reinforce the downward pressure in the NZD/USD pair.
On the other side, softer economic data released from New Zealand could support the weakness in the NZD/USD pair. The data showed that Producer Price Index (PPI) - Input declined to -0.2% in the second quarter from 0.0% prior and PPI Output remained consistent at 0.2%, compared to 0.7% as expected.
On Wednesday, the Reserve Bank of New Zealand (RBNZ) maintained the current interest rate at 5.5%. This decision potentially affected the value of the New Zealand Dollar (NZD). Additionally, the NZD/USD pair is facing downward pressure due to China's woes on economic overview. China's economic performance is significant for China-proxy Kiwi, as it is a major trading partner of New Zealand.
US Dollar Index (DXY), which gauges the strength of the US Dollar (USD) against a basket of six major currencies, hovers around 103.40 during the early trades in the European session. Investors aim to gather extra momentum from upcoming US economic indicators to enhance their understanding of the possible interest rate hikes that the US Federal Reserve (Fed) might contemplate during its September meeting. These indicators are anticipated to offer a more distinct view of the situation, aiding investors in assessing the potential course of action by the Fed.