NZD/USD drops to near 0.6100 as RBNZ opts to keep OCR unchanged

• 
  NZD/USD
  depreciates
  as
  the
  RBNZ
  keeps
  the
  Official
  Cash
  Rate
  (OCR)
  unchanged
  at
  5.50%
  in
  its
  July
  meeting.
• 
  The
  New
  Zealand
  Dollar
  struggles
  after
  the
  release
  of
  soft
  Consumer
  Price
  Index
  data
  from
  close
  trading
  partner
  China.
• 
  The
  US
  Dollar
  appreciated
  after
  Fed’s
  Powell
  stated
  that
  a
  rate
  cut
  is
  not
  appropriate
  until
  the
  greater
  confidence
  of
  inflation
  slows
  down.

NZD/USD
loses
ground,
trading
around
0.6100
during
Asian
trading
hours
on
Wednesday.
This
drop
is
driven
by
an
interest
rate
decision
by
the
Reserve
Bank
of
New
Zealand
(RBNZ).

RBNZ
has
opted
to
keep
the
Official
Cash
Rate
(OCR)
unchanged
at
5.50%
in
its
July
monetary
policy
meeting,
marking
the
eighth
consecutive
meeting
with
no
change.

The
New
Zealand
Dollar
(NZD)
faces
pressure
following
the
release
of
soft
Consumer
Price
Index
(CPI)
data
from
China,
a
key
trading
partner.
Chinese
CPI
rose
0.2%
YoY
in
June,
down
from
a
0.3%
increase
in
May.
Market
expectations
had
projected
a
0.4%
increase
for
the
period.
Chinese
CPI
inflation
fell
by
0.2%
month-over-month
in
June,
compared
to
a
0.1%
decline
in
May,
which
was
below
the
anticipated
0.1%
decrease.

The
US
Dollar
(USD)
received
support
after
the

Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
before
the
US
Congress
on
Tuesday.
Despite
acknowledging
improving
inflation
figures,
the
Fed
remains
firmly
cautious.
Powell
answered
questions
before
the
Senate
Banking
Committee
on
the
first
day
of
his
Congressional
testimony
on
Tuesday.

Fed
Chair
Jerome
Powell
stated,
“More
good
data
would
strengthen
our
confidence
in
inflation.”
Powell
emphasized
that
a
“policy
rate
cut
is
not
appropriate
until
the
Fed
gains
greater
confidence
that
inflation
is
headed
sustainably
toward
2%.”
He
also
noted
that
“first-quarter
data
did
not
support
the
greater
confidence
in
the
inflation
path
that
the
Fed
needs
to
cut
rates.”

Traders
are
anticipating
the
second
semi-annual
testimony
by
Fed
Chair
Jerome
Powell,
as
well
as
speeches
by
the
Fed’s
Michelle
Bowman
and
Austan
Goolsbee.
Additionally,
attention
will
be
on
the
US
Consumer
Price
Index
(CPI)
data,
set
to
be
released
on
Thursday.