- NZD/USD finds support near 0.6200 as overall sentiment is bullish.
- Monthly US retail sales contracted 0.1%.
- The New Zealand economy contracted a surprising 0.3% in the third quarter.
The NZD/USD pair finds buyers’ interest after a correction near the support of the 0.6200 round level at the beginning of the American session on Thursday. The overall outlook for the pair is optimistic as the market sentiment is quite optimistic due to the surprising dovish comments from the Federal Reserve (Fed).
The S&P500 is expected to open higher, given the strength of overnight futures. US 10-year Treasury yields have fallen further to around 3.94% as the Fed has ended its interest rate hike.
Fed Chair Jerome Powell, in his monetary policy statement on Wednesday, announced three rate cuts in 2024 against expectations of a “higher for longer” interest rate message, hitting the US dollar. Powell did not declare victory over inflation, but his confidence in the resilience of the labor market and cooling inflation forecasts raised expectations of a “soft landing.”
Thursday’s US macroeconomic data, with a contrary-to-expected increase in retail sales and a decline in jobless claims, has not supported the dollar.
As for the NZD, weak third quarter Gross Domestic Product (GDP) numbers in New Zealand kept the New Zealand Dollar lower. The New Zealand economy contracted 0.3%, while investors expected a growth rate of 0.2%. In the previous period, the economy grew 0.5%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
