Ella 
In early Asian trading on Wednesday, NZD/USD was hovering around 0.6100. A rebound in the US dollar (USD) and rising US Treasury yields have put some selling pressure on NZD/USD. Amid muted economic data on Wednesday, NZD/USD remains at the mercy of U.S. dollar price swings and broader risk sentiment. As of press time, NZD/USD was trading at 0.6147, down 0.06% on the day.
U.S. inflation climbed above 3% in February, forcing the Federal Reserve to wait until at least the summer to start cutting interest rates. U.S. consumer price index (CPI) data for February were stronger than expected, with monthly inflation rising 0.04% from 0.3% in January. Core inflation rose 0.4% monthly in February and increased 3.8% annually. Better inflation data could persuade the Fed to pay attention to more data and save policymakers from rushing to cut interest rates. This in turn will boost the US dollar, putting pressure on the NZD/USD currency pair.
On the other hand, China’s policies to boost the real estate market remain unclear, which remains a bearish factor for the New Zealand dollar, China’s proxy currency. Since Moody’s downgraded Chinese state-owned developer Vanke’s investment grade rating, market sentiment has further deteriorated, and the latest news is that 12 Chinese commercial banks will increase their support for Vanke.
