NZD/USD Approaches 0.6220 On The Back Of a Subdued Us Dollar, With NZ Inflation In Sight
NZD/USD is inching toward 0.6220 despite the USD Index's lackluster performance. S&P500 futures have extended their losses as investors worry about future equity performance. Despite the RBNZ's decision to raise interest rates, it is anticipated that inflation in New Zealand will persist.

After defending the round-level support at 0.6200, the NZD/USD pair is displaying sluggish behavior in the Asian session. The Kiwi asset is approaching the 0.6220 resistance level as the US Dollar Index (DXY) performs poorly.
S&P500 futures have prolonged their losses due to investors' concerns regarding the future performance of equities, indicating a cautious performance. US commercial banks have thus far demonstrated a varied performance. Initially, investors were apprehensive about the quarterly performance of banking equities in the wake of March's turmoil and restrictive credit conditions.
After a significant retracement, the US Dollar Index (DXY) is lingering above 101.78. Despite hawkish comments from Federal Reserve (Fed) policymakers, the USD Index failed to exhibit a power-pack action. As reported by Reuters, James Bullard, president of the Federal Reserve Bank of St. Louis, advocated for the continuation of the central bank's policy tightening in light of the fact that labor market data remains robust.
In the second half of 2023, the likelihood of a recession diminishes, in the view of Fed policymakers, as strong labor demand fuels global consumption.
On the front of the New Zealand Dollar, investors await the quarterly inflation data, which is scheduled for Thursday. According to the consensus, the New Zealand Consumer Price Index (CPI) accelerated to 2.0% in the first quarter of CY2023 from 1.4% in the prior quarter. The annual inflation rate in New Zealand has increased to 7.5% from 7.2%. As a result of the Reserve Bank of New Zealand's (RBNZ) decision to raise interest rates, households in the New Zealand economy are anticipated to bear a stifling burden due to the country's escalating inflation.
This also implies that RBNZ Governor Adrian Orr will continue to raise interest rates to rein in inflation.
Bonus rebate to help investors grow in the trading world!