NZD/USD appreciates to near 0.6100 as traders await US inflation

• 
  NZD/USD
  rebounds
  ahead
  of
  US
  Consumer
  Price
  Index
  (CPI)
  data
  scheduled
  for
  Thursday.
• 
  The
  US
  core
  CPI
  is
  expected
  to
  remain
  steady
  at
  3.4%
  year-over-year
  in
  June.
• 
  The
  New
  Zealand
  Dollar
  may
  limit
  its
  upside
  due
  to
  dovish
  sentiment
  surrounding
  the
  RBNZ.

NZD/USD
recovers
its
recent
losses,
trading
around
0.6090
during
the
European
session
on
Thursday.
Traders
await
the
release
of
the
upcoming
US
Consumer
Price
Index
(CPI)
data
for
June,
scheduled
for
release
on
Thursday,
for
more
clarity
on
the
Federal
Reserve’s
(Fed)
monetary
policy
direction.

Market
forecasts
generally
predict
that
the
annualized
US
core

CPI
for
the
year
ending
in
June
will
remain
steady
at
3.4%.
Meanwhile,
headline
CPI
inflation
is
expected
to
increase
to
0.1%
month-over-month
in
June,
compared
to
the
previous
flat
reading
of
0.0%.

Meanwhile,
on
Wednesday,
Federal
Reserve
(Fed)

Chairman
Jerome
Powell
underscored
the
importance
of
closely
monitoring
the
labor
market,
highlighting
its
significant
deterioration.
Additionally,
Powell
expressed
confidence
in
the
downward
trend
of
inflation,
following
his
remarks
on
Tuesday
that
emphasized
the
necessity
of
further
data
to
strengthen
confidence
in
the
inflation

outlook.

The
New
Zealand
Dollar
(NZD)
faced
pressure
following
the
Reserve
Bank
of
New
Zealand’s
(RBNZ)
dovish
monetary
policy
statement.
The
central
bank
held
its
cash
rate
steady
at
5.5%
on
Wednesday
as
expected but
hinted
at
possible
rate
cuts
in
August
if
inflation
decreases
as
anticipated.

ING’s
FX
strategist
Francesco
Pesole
observed,
“The
Bank
displayed
greater
confidence
in
disinflation
in
the
statement,
noting
that
‘restrictive
monetary
policy
has
significantly
reduced
consumer
price
inflation.”

Read
the
full
article:
A
surprise
dovish
tilt
by
the
RBNZ
–
ING