- The New Zealand dollar yields its previous profits and is close to minimum of several months at 0.5885.
- China’s weak manufacturing data have limited the Kiwi recovery attempts today.
- The US dollar is uploaded while investors prepare for US PCE inflation data and non -agricultural payroll figures.
The attempt to recover from the New Zealand dollar against its US counterpart was limited in the 0.5940 earlier today, and the torque has given profits during the European session on Thursday, going back to fair levels above minimum of several months, at 0.5885.
The Kiwi remains in a weak position after a mass sale of 2.5% during the last five days, since the US dollar can be seen on all fronts in the middle of a combination of solid data, decreasing hopes of fed cuts and a series of agreements that have relieved concerns about commercial uncertainty.
The Federal Reserve remained firm on Wednesday and gave few clues about the time of the next rate cut, which led investors to reduce monetary flexibility expectations for this year. The president of the Fed, Powell, reiterated his call to patience until the real impact of tariffs is evidenced, which, according to him, could take months. The US dollar was appreciated on all fronts after Powell’s press release.
Beyond that, China’s manufacturing activity data, the main commercial partner of New Zealand, contracted more than expected, since external demand lost impulse while domestic demand remains weak. The NBS manufacturing PMI fell to 49.3 in July, from 49.7 in June, in the face of the expectations of a stable reading, which increased the negative pressure on China’s proxies, such as the New Zealander dollar.
In the US, the approach today is in the publication of July PCE inflation. Price pressures are expected to accelerate to 2.5% year -on -year, from the previous 2.3%, although the underlying PCE has been expected to remain unchanged by 2.7%. These figures could keep the US dollar backed, at least until the non -agricultural payroll report on Friday.
Economic indicator
Personal (annual) expenses price index
The Personal Consumption Expenditure Index (PCE), published monthly by the US Economic Analysis Office, measures changes in the prices of goods and services bought by consumers in the United States (USA). The interannual reading compares the prices of the month of reference with those of a year earlier. Changes in prices can make consumers change from good to good to another and the PCE deflator can take into account such substitutions. This makes it the preferred inflation extent by the Federal Reserve. Generally, a high reading is bullish for the US dollar (USD), while a low reading is bassist.
Read more.
Next publication:
Jul 31, 2025 12:30
Frequency:
Monthly
Dear:
2.5%
Previous:
23%
Fountain:
US Bureau of Economic Analysis
Economic indicator
Underlying personal consumer expenses index (annual)
The Personal Consumption Expenditure Index (PCE), published monthly by the US Economic Analysis Officemeasures the changes in the prices of goods and services bought by consumers in the United States (USA). The PCE price index is also the preferred inflation indicator of the Federal Reserve (FED). The interannual reading compares the prices of the goods in the month of reference with the same month of the previous year. The underlying reading excludes the most volatile components of food and energy to give a more accurate measurement of pressures on prices. Generally, a high reading is bullish for the US dollar (USD), while a low reading is bassist.
Read more.
Next publication:
Jul 31, 2025 12:30
Frequency:
Monthly
Dear:
2.7%
Previous:
2.7%
Fountain:
US Bureau of Economic Analysis
After publishing the GDP Report, the US Economic Analysis Office publishes the data of the Personal Consumer Expenses Price Index (PCE) together with monthly changes in personal expenses and personal income. FOMC policies formulators use the basic annual PCE price index, which excludes volatile food and energy prices, such as their main inflation indicator. A stronger reading than expected could help USD overcome their rivals, as it would insinuate a possible radical change in the forward orientation of the Fed and vice versa.
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.
