Ella 
In early Asian trading on Wednesday, NZD/USD was trading around 0.6065 after rising for the third consecutive day. Market participants will be closely watching the Reserve Bank of New Zealand’s interest rate decision on Wednesday. Later, the US March consumer price index (CPI) inflation data and the Federal Reserve meeting minutes will become the focus of the market.
The Reserve Bank of New Zealand is widely expected to keep the official cash rate (OCR) at 5.50% at its sixth consecutive meeting. The market has fully priced in the Reserve Bank of New Zealand to remain on hold, and will pay attention to the tone of the Reserve Bank of New Zealand’s policy and the timing of interest rate cuts. The high level of inflation is the main reason why the Reserve Bank of New Zealand is cautious about signaling an imminent rate cut. Analysts believe that the Reserve Bank of New Zealand would rather wait for the Federal Reserve to cut interest rates first. This in turn could boost NZD/USD and constitute a “boost factor” for NZD/USD.
In terms of the dollar, last week’s U.S. jobs report showed that the U.S. economy added more jobs than expected, sparking speculation that the Federal Reserve may delay its easing cycle. Federal Reserve Chairman Jerome Powell said the Fed may cut interest rates if the U.S. economy continues on its current trajectory, adding that a major factor in the central bank’s decision to cut rates is when or whether inflation returns to the Fed’s 2% target. Target. After the RBNZ monetary policy meeting, the focus will shift to US inflation data and the Fed meeting minutes, which may provide some signals on the outlook for further inflation and interest rates.
