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NZD/USD edges higher to 0.6125 despite the stronger US Dollar.
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The Federal Open Market Committee (FOMC) meeting begins its two-day meeting on Tuesday, with no change expected.
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New Zealand’s annual GDP growth number for Q3 is projected to expand by 0.2% from 0.9%.
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The US Consumer Price Index (CPI) will be a closely watched event on Tuesday.
The NZD/USD pair gained momentum in the early Asian session on Tuesday. The pair held positive ground for the second day in a row despite a strong US dollar (USD). Investors will take cues from US economic data and the Federal Open Market Committee’s (FOMC) rate decision ahead of Thursday’s New Zealand growth numbers. The pair is currently trading near 0.6125, unchanged for the day.
The Federal Open Market Committee (FOMC) meeting began its two-day meeting on Tuesday, with no change expected. The market is pricing in the FOMC to keep interest rates unchanged at 5.25%-5.50% at Wednesday’s December meeting. Ahead of the key event, investors are awaiting US Consumer Price Index (CPI) data for fresh stimulus.
The monthly CPI number is expected to increase from 0% to 0.1% MoM and the annual rate is estimated to decline to 3.1% from 3.2% YoY. Annual core CPI, which excludes volatile food and energy prices, is projected to hold steady at 4.0%.
On the other hand, New Zealand’s Gross Domestic Product (GDP) for the third quarter (Q3) will be released on Thursday. The annual growth figure is projected to expand to 0.2% from 0.9% in the previous reading, while the quarterly growth figure is projected to increase by 0.5% versus the previous 1.8%.
The US Consumer Price Index (CPI) is due later on Tuesday. Later this week, the Federal Open Market Committee (FOMC) will announce an interest rate decision on Wednesday, and New Zealand’s GDP growth numbers will be out on Thursday. These events can cause volatility in the market and give a clear direction to the NZD/USD pair.
NZD/USD
