The NZD/USD pair is showing strength around 0.6110 in Thursday’s early Asian session, with a 0.12% increase for the day. The US ISM Services PMI came in weaker than expected, dropping to 48.8 in June from 53.8 in May. The RBNZ is expected to keep its OCR unchanged at 5.5% at its upcoming policy meeting next week.
The NZD/USD pair is continuing to climb near 0.6110 during the early Asian trading hours on Thursday. The Greenback is facing downward pressure following the disappointing US ISM Services PMI report, leading to the pair’s upward movement. The US markets will be closed on Thursday for Independence Day.
The latest data from the Institute for Supply Management (ISM) revealed that the US Services PMI fell to 48.8 in June, below the market estimate of 52.5. This, along with the increase in US weekly Initial Jobless Claims, has resulted in a weaker US economic outlook and has caused some selling pressure on the Greenback, benefiting NZD/USD.
The Federal Reserve’s meeting minutes from June show that officials are taking a wait-and-see approach to monetary policy decisions, based on the economy’s performance. Chicago Fed President Austan Goolsbee mentioned that achieving a 2% inflation rate will take time and more data on the economy is needed.
Looking at New Zealand, the RBNZ is expected to maintain its borrowing costs at 5.5% in July, with a possibility of a rate cut in October. Traders will be closely watching the Monetary Policy Statement for any indications of a potential easing cycle from the central bank, which could impact the NZD’s value and limit the upside for the NZD/USD pair.