NZD/USD PRICE FORECAST: EXTENDS REJECTION SLIDE FROM 50% FIBO.; DROPS TO 0.5900 NEIGHBORHOOD
NZD/USD PRICE FORECAST: EXTENDS REJECTION SLIDE FROM 50% FIBO.; DROPS TO 0.5900 NEIGHBORHOOD
NZD/USD Pulls Back from Year-to-Date Highs
The NZD/USD pair retreated from the mid-0.5900s, touching a fresh year-to-date high during Thursday's Asian session.
This decline was prompted by stronger-than-expected consumer inflation figures from New Zealand.
The pair dropped to the 0.5900 neighborhood, ending a six-day winning streak amid a modest uptick in the US Dollar.
New Zealand's Inflation Data Influences Market Sentiment
New Zealand's Consumer Price Index (CPI) rose by 1.8% in the third quarter, falling short of the expected 2.0% and decelerating from the previous quarter's 6.0% annual rate.
This softer inflation data led investors to scale back expectations for an interest rate hike by the Reserve Bank of New Zealand (RBNZ) in November, exerting downward pressure on the NZD/USD pair.
The US Dollar experienced a modest rebound, supported by improved US Treasury yields and hawkish remarks from Federal Reserve officials.
Philadelphia Fed President Patrick Harker suggested that the central bank should avoid introducing new economic pressures by increasing borrowing costs, which may have influenced the USD's strength.
Investors are closely monitoring upcoming US economic indicators, including Retail Sales and Industrial Production figures, which could provide insights into the US economy's health and influence the USD's trajectory.
The outcome of these data releases may impact the NZD/USD pair's direction in the near term.
