NZD/USD Depends on RBNZ

NZD/USD is ending the North American session down by 0.9% after falling from a high of 0.7132 to a low of 0.7062 on the day.

A stronger than expected Consumer Price Index data overnight saw the USD rally against all G10 currencies.

Markets have responded in kind following Fed’s statements last week that the current inflation surge will be transitory.

Today’s data comes in contrast to such a belief. meanwhile, the NZD was the second-best performer although remains pressured due to the US data casting doubt on the idea that the Fed can remain patient.

NZD has the potential to respond very positively to the next couple of Reserve Bank of New Zealand OCR hikes.