Forex News: NZ Dollar Weakens In Cautious Trade

NZ Dollar Weakens In Cautious Trade

(RTTNews) - The NZ dollar fell against its major counterparts in the Asian session on Thursday, as U.S. economic data stoked fears that the Federal Reserve will keep raising interest rates in coming months.

Data from the Institute for Supply Management showed that U.S. manufacturing contracted for a fourth straight month in February, but the prices-paid measure rose unexpectedly.

The U.S. central bank needs to lift the federal funds rate to between 5 percent and 5.25 percent and keep there "well into 2024" in order to bring inflation under control, Bostic said.

Kashkari also called for higher rates, adding he is "open-minded" on either a 25- basis point or a 50-basis point rate hike at the U.S. central bank's next meeting in March.

Fed funds futures show that markets expect a peak policy rate of 5.5 percent in September.

The kiwi edged down to 0.6211 against the greenback and 1.7110 against the euro, off its early highs of 0.6257 and 1.7039, respectively. The kiwi is seen finding support around 0.60 against the greenback and 1.73 against the euro.

The kiwi was down against the yen, at 84.88. On the downside, 82.00 is possibly seen as its next support level.

The kiwi weakened to 1.0833 against the aussie, from an early 1-1/2-month high of 1.0792. If the currency slides further, 1.10 is likely seen as its next support level.

Looking ahead, Eurozone CPI for February and the jobless rate for January are due in the European session.

At 7.30 am ET, the European Central Bank releases the accounts of the monetary policy meeting of the governing council held on February 1 and 2.

U.S. weekly jobless claims for the week ended February 25 will be featured in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2023 RTTNews.com. All Rights Reserved

Market News provided by RTTNews