Ella 
During the Asian session on Thursday, the NZD/USD rebounded from a one-week low and moved higher near 0.5930, giving the US dollar some respite. In addition, Chinese economic data were mixed and had a neutral impact on NZD/USD.
China’s consumer price index in October recorded an annual rate of -0.2%, slightly higher than the expected -0.1%. At the same time, the producer price index recorded an annualized rate of -2.6%, slightly better than the expected -2.7%.
NZD/USD is under pressure as the global economic outlook remains relatively pessimistic. This has a particular impact on New Zealand, an important commodities exporter. In addition, the Reserve Bank of New Zealand inflation report is also one of the reasons for the weakness of NZD/USD. The report conveyed a general sentiment that prices are expected to fall, likely due to a slowing economy and reduced demand for goods and services.
The U.S. dollar index fell to around 105.50, falling for a second consecutive day. U.S. Treasury yields fell, and the U.S. dollar (USD) weakened. Investors are looking to Federal Reserve Chairman Jerome Powell, who is scheduled to participate in a panel discussion later today, for his views on interest rate policy.
Although Federal Reserve officials have denied that they will cut interest rates, the dollar still faces challenges. Federal Reserve Governor Michelle Bowman said the central bank is considering raising short-term interest rates in the future, adding a layer of uncertainty. In contrast, Minnesota Fed President Neil Kashkari expressed doubts about whether the Fed has raised interest rates enough and pointed to the resilience of the economy as a key factor influencing the Fed’s policy bias.
