Ella 
NZD/USD rebounded strongly from the more than two-month low hit during the Asian session on Wednesday, but lacked follow-up buying and remained below the 0.6100 round figure. Nonetheless, spot prices appear to have ended their two-day losing streak for now and are currently trading around 0.6065, still up over 0.30% for the day.
Although New Zealand’s consumer price index (CPI) was lower than expected earlier today, non-traded inflation indicated that domestic price pressures persisted, providing some support for the New Zealand dollar (NZD). Beyond this, upbeat market sentiment tends to favor the risk-sensitive NZD, prompting some intraday short covering in NZD/USD.
On the other hand, expectations that the Federal Reserve (Fed) will start cutting interest rates in September weakened the trend of the US dollar (USD). This largely overshadowed better-than-expected U.S. retail sales data on Tuesday and kept U.S. Treasury yields depressed near multi-month lows, which weakened the U.S. dollar and provided support for NZD/NZD. The U.S. dollar provides support.
Meanwhile, market players believe the Reserve Bank of New Zealand (RBNZ) may cut interest rates early in response to the weak CPI report. In addition to this, China’s economic woes have further limited the upside for NZD/USD, so bullish traders will need to be cautious.
