The US CPI Report Sends the New Zealand Dollar Sinking

NZD/USD

The New Zealand Dollar plunged against the USD yesterday after the US CPI data, which sent the NZD/USD pair dwindling by 2.22%, signaling its worst performance since March 2020.

The stickier core gauge surpassed the 56.1% economic expectations strengthening to 6.3% y/y from 5.9% prior. The difference in the headline and core gauge move resulted from the recent fall in energy prices and an increase in housing rates.

All this fostered an aggressive Fed that the market has termed the most hawkish central bank in the world. According to the CME FedWatch Tool, the odds of the Feds tightening rate to a 75 bp rate hike this month is 66%, as a 100-basis point surge is at a probability of 33%.

The Feds continue to pressure the NZD as the US dollar continues to soar. However, despite its dwindling, retail traders continue to buy the NZD, thus boosting the NZD/USD a bit. They have influenced its exposure, and they have cut off bets. Despite this, the market expects the NZD to continue on a downside.

This Post Has 2 Comments

  1. Suivre Téléphone

    Maintenant que de nombreuses personnes utilisent des téléphones intelligents, nous pouvons envisager le positionnement des téléphones mobiles via des réseaux sans fil ou des stations de base.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.