NZD/USD rose in early Asian trading on Tuesday. NZD/USD is firmer for the second day in a row despite a stronger US dollar (USD). Ahead of New Zealand’s economic growth data on Thursday, investors will take cues from U.S. economic data and the Federal Reserve’s interest rate decision. NZD/USD is currently trading around 0.6125, unchanged throughout the day.
No changes are expected at the Fed meeting, which kicks off a two-day meeting on Tuesday. Markets expect the Federal Reserve to keep interest rates unchanged at 5.25%-5.50% at its December meeting on Wednesday. Ahead of a key Federal Reserve meeting, investors awaited fresh impetus from U.S. consumer price index (CPI) data.
Inflation is expected to rise 0.1% monthly from 0%, while the annual rate is expected to fall to 3.1% from 3.2%. Annual core inflation, which strips out volatile food and energy prices, is expected to hold steady at 4.0%.
On the other hand, New Zealand’s third-quarter GDP will be released on Thursday. New Zealand’s third-quarter gross domestic product is expected to be at an annualized rate of 0.2%, compared with 0.9% in the previous quarter, and at a quarterly rate of 0.5%, compared with 1.8% in the previous quarter.
The U.S. Consumer Price Index will be released on Tuesday evening. Later this week, the Federal Reserve will announce an interest rate decision on Wednesday, and New Zealand’s third-quarter GDP growth data will be released on Thursday. These events can trigger market volatility and provide direction for NZD/USD.
