NZD/USD gains traction above 0.6100, eyes on US data

NZD/USD gains ground near 0.6120 in Thursday’s early Asian session. US inflation declined to 3.4% in April, prompting traders to increase their bets on the Fed’s rate cuts this year. The RBNZ interest rate decision next week will be in the spotlight, with no change in the OCR rateexpected. The softer US CPI in April has prompted the prospect of rate cuts from the Federal Reserve this year, which exerts some selling pressure on the Greenback.

Investors anticipate that the Fed will wait for more data to gain confidence that inflation will return to the Fed’s 2% target. The Federal Reserve Chairman Jerome Powell said on Tuesday that inflation is falling slower than expected, and the PPI data provided more justification to keep rates higher for longer.

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