Ella 
NZD/USD fell for the sixth consecutive session. The pessimistic global economic outlook casts a pall over the pair. During the Asian session on Monday, spot prices fell to around 0.5890.
The Reserve Bank of New Zealand’s (RBNZ) inflation report led to weakness in the pair as New Zealand is a significant exporter of commodities. The report shows that prices are generally expected to fall, which may be related to an economic slowdown and reduced demand for goods and services. This expectation seems to be creating conditions for a change in the economic landscape.
The Business NZ PSI index for October showed a decline in services, falling to 48.9 from 50.7 previously. The data is likely to add pressure on the New Zealand dollar (NZD), suggesting it is facing more challenges.
China’s inflation rate recorded its annual decline in October, which could dampen prospects for global economic growth. This has a direct impact on the New Zealand dollar, as New Zealand is a major commodity exporter to China.
Market participants are awaiting the upcoming meeting between the US and China presidents. President Biden and President Xi will meet on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco on Wednesday, their first meeting in a year. The conference agenda is wide-ranging, touching on global issues such as the Israel-Hamas conflict, Russia’s invasion of Ukraine, fentanyl production and discussions around artificial intelligence.
Despite improvements in U.S. Treasury yields, the U.S. Dollar Index (DXY) remains directionless sideways, bidding near 105.80. The coupon yield of the 10-year U.S. Treasury note was 4.66%, up 0.17% at press time.
Recent hawkish comments from Federal Reserve Chairman Jerome Powell failed to boost the green dollar. Powell worries that current policies may not be enough to bring inflation down to the coveted 2.0% target.
The U.S. dollar (USD) faced challenges following the release of preliminary data on the U.S. Michigan Consumer Confidence Index on Friday. The report showed consumer sentiment declined, falling to 60.4 in November from 63.8 the previous month.
Traders are expected to focus on the U.S. Consumer Price Index (CPI) due to be released on Tuesday. On the kiwifruit front, the Producer Price Index – Output will be released later this week. Meanwhile, Wednesday will focus on China’s industrial production and retail sales.
