Ella 
NZD/USD continued its losing streak since November 6, falling to around 0.5870 in Asia on Tuesday. The New Zealand dollar is facing downward pressure, which may trigger a 0.9% month-on-month drop in New Zealand food prices in October.
Given that food prices account for nearly 19% of New Zealand’s consumer price index, the food price index is significant as an indicator of inflation in the country. The index tracks the price of a basket of foods that represents typical consumption patterns of New Zealand households.
The U.S. Dollar Index (DXY) faces challenges, struggling to stop losses near 105.70. The dollar may face headwinds from fluctuations in U.S. bond yields. The 10-year U.S. Treasury yield traded in a brief range and was at 4.63% at press time.
The market expects the U.S. consumer price index (CPI) to rise in October, but at a slower pace. Meanwhile, forecasts for core annual rates remain stable. If the actual data is consistent with these expectations, it will solidify the market’s view that the Federal Reserve (Fed) is done raising interest rates. This, in turn, will strengthen downward pressure on the US dollar (USD).
