- The strength of the US dollar causes most of the G8 currencies to weaken, except for the New Zealand dollar.
- Vice Chair Brainard boosted hopes that the Federal Reserve could slow its pace of interest rate hikes.
- New Zealand dollar (NZD) traders are focused on housing data, due to be released around 21:30 GMT.
The New Zealand dollar (NZD) advances in the American session, despite the fact that the speeches of members of the Fed strengthened the US dollar (USD), a late intervention by the vice president of the Federal Reserve (Fed), Brainard, made the sentiment positive. Thus, the NZDUSD is trading at 0.6113, up 0.49%.
Federal Reserve Vice Chair Brainard turned sentiment in a positive way
US stocks turned green. Lael Brainard, vice president of the Fed, affirmed that the institution will reduce the rate hikes soon and supports a rise in interest rates of 50 basis points. However, she stressed that the US central bank will not relax, acknowledging that “we have additional work to do.” Echoing her comments, Fed Governor Christopher Waller said the Fed “still has some way to go” in tightening monetary conditions. He added that the US central bank could ease hikes to 50 basis points in December or after that meeting and warned that Fed officials are nowhere near a pause.
In terms of data, the New York Fed’s survey of consumer inflation expectations for October rose to 5.9% over a one-year horizon, while the three-year one jumped to 3.1%. The rise in inflation expectations reflects high gasoline prices.
For its part, the dollar index rose 0.27% and stands at 106,710, which fails to prop up the dollar against the New Zealand dollar.
Elsewhere, in the Asian session on Monday, the New Zealand calendar revealed that Services and Composite Services Performance (PSI) rose by 1.5 points, surpassing the previous month’s reading of 55.9 to 57.4, while the second dropped to 53.1 from 54.1
what to see
REINZ housing data will be published in the New Zealand Economic Agenda. In the United States, the Producer Price Index (PPI) for October and Fed speakers such as Patrick Harker, Lisa Cook and Michael Barr.
NZDUSD Key Technical Levels
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.
