NZD/USD Under Pressure below 0.6000

In the Asian market on Friday, after the NZD/USD pulled back from the 0.6000 mark, it still faced some selling pressure near 0.5970. New Zealand Reserve Bank Governor Adrian Orr’s dovish remarks weighed on the New Zealand dollar/dollar. Investors are awaiting U.S. personal consumption expenditures (PCE) data for February due out on Friday for new catalysts.

The U.S. economy expanded faster than expected in the fourth quarter (Q4) on strong consumer spending and business investment, the third estimate released by the U.S. Bureau of Economic Analysis on Thursday showed. The final annual rate of U.S. gross domestic product (GDP) in the fourth quarter was 3.4%, higher than the previously expected 3.2%. The U.S. dollar (USD) is trading higher after stronger-than-expected data.

In terms of NZD/USD, New Zealand Reserve Bank President Orr said that the New Zealand Reserve Bank is working hard to bring the inflation rate back to the target range, while adding that interest rates have peaked and a rate cut is getting closer. The Reserve Bank of New Zealand said it may start cutting interest rates from early next year. However, investors have priced in interest rate cuts from the Reserve Bank of New Zealand starting in August this year. This in turn suppresses the NZD/USD, which is negative for the NZD/USD.

The U.S. core PCE price index is expected to show a monthly rate of 0.3% in February and an annual rate of 0.8% in February. If the data remains strong, it could boost the dollar. Federal Reserve Chairman Jerome Powell and San Francisco Fed President Mary Daly will speak later on Friday.

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