Nzdusd Trades At Weekly Lows

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Nzdusd Trades At Weekly Lows

Nzd/Usd Trades At Weekly Lows Ahead Of Rbnz

It's the 2nd day in a row that the NZD/USD is under the spell of the bears as the pair has already touched weekly lows. The NZD/USD can be seen near the mid of 0.6100 with a bearish bias. At the same time, the USD is showing a modest strength, which is another reason for a weaker NZD/USD.

If we look at the DXY, it is also under pressure after the recent decline in bond yields. That's one reason we are not seeing any significant decreases in the NZD/USD for now.

Dxy Under Pressure On Rate Cuts

According to experts, any significant drop in the DXY is still elusive as there's still a higher chance that the rates will stay for a long time. When we combine this with the resilient US economy and sticky inflation, the NZD/USD appears to face a downward correction.

The greenback and the US bond yields are pushed higher with a hawkish outlook of the Federal Reserve. So, that's also why the NZD bulls are hesitant to take the opportunity despite the greenback's weakness.

Looking ahead, the central risk theme for the NZD/USD is most definitely the policy decision from the RBNZ (Reserve Bank of New Zealand). Once we get an announcement in the next few days, the NZD/USD will likely decide its following path.

Meanwhile, the NZD/USD traders will focus on macro data from the USA, such as the Richmond Manufacturing index, durable goods orders, and the consumer confidence index from the Conference Board.

Although these data releases are significant, the key focus will be the PCE from the USA and the RBNZ decision from New Zealand.

For now, the greenback is weak while the NZD is even weaker, which has made it difficult for the NZD/USD to turn higher.

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