NZD/USD escalates towards 0.6270s after US GDP shrinks – by christianborjon NZDUSD Macroeconomics UnitedStates Recession
by 75 bps on Wednesday. Market players speculate that the Fed tilted “dovish,” which appears premature, as Fed Chair Powell reiterated that they are committed to bringing inflation down to 2%.
Nevertheless, the NZD/USD is trading at 0.6272 after diving in the early Asian session and hitting the daily low at 0.6250, but buyers stepping in lifted the pair just shy of reaching 0.6300.Investors’ moods shifted positively in the last couple of hours. The US Bureau of Economic Analysis reported that GDP for the second quarter in its Advance estimate contracted by 0.9%, missing estimations of a 0.4% growth.
Analysts at BBH said that the Fed “… noted that spending and production are softer while job gains remain robust. Lastly, the statement noted that balance sheet reduction is proceeding at its announced pace. All of this was pretty much as expected. There was no hint of a pause or that the Fed is even thinking about a pause.”had pivoted. We wholeheartedly disagree.”
Aside from this, US Initial Jobless Claims for the week ending on July 23 increased by 256K, higher than estimations but lower than the previous week’s 261K.The New Zealand economic docket will feature the ANZ Consumer Confidence for July, foreseen at 79. On the US front, the calendar will feature the core and headline PCE Price Index for June, the Chicago PMI, and the University of Michigan Consumer Sentiment for July.
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