NZD/USD Continues to Face Selling Pressure Below 0.6000, and US PCE Data Is Imminent

The NZD/USD pair continues to face selling pressure near 0.5970 following a retracement from the 0.6000 barrier on Friday during the Asian session. The New Zealand Dollar (NZD) is impacted by the dovish remarks made by Governor Adrian Orr of the Reserve Bank of New Zealand (RBNZ). On Friday, investors anticipate the publication of US Personal Consumption Expenditures (PCE) data for February in search of new catalysts.

The US economy expanded at a faster rate than anticipated in the fourth quarter (Q4), the third estimate from the Bureau of Economic Analysis released on Thursday. This was due to resilient corporate investment and consumer spending. The final quarterly Gross Domestic Product (GDP) of the United States increased by 3.4% annually, compared to the previous estimate of 3.2%. The US Dollar (USD) gains a small amount of ground in response to the data that exceeded expectations.

Regarding New Zealand, RBNZ Governor Orr stated that the central bank is making progress toward returning inflation to the target range, adding that interest rates have reached their zenith and reductions are imminent. The RBNZ has hinted that rate cuts could commence early the following year. Investors, nevertheless, have factored in reductions beginning in August of this year. Subsequently, the NZD is dragged lower, creating a headwind for the NZD/USD pair.

The anticipated US Core PCE data for February, which will be released later on Friday, indicates an increase of 0.3% month-over-month and 0.8% year-over-year. A stronger report could potentially result in an appreciation of the USD. Later on Friday, Fed Chair Jerome Powell and Fed Bank of San Francisco President Mary Daly are scheduled to speak.