Ella 
The Purchasing Managers Index (PMI) data released by the United States on Thursday was higher than expected, and risk aversion sentiment increased, putting pressure on NZD/USD. The data strengthened the Fed’s outlook for “higher interest rates for longer.” On Friday in Asia, NZD/USD was trading around 0.6100.
The S&P Global U.S. Composite Purchasing Managers Index (PMI) rose to 54.4 in May from 51.3 in April, hitting the highest level since April 2022. The indicator is stronger than the expected value of 51.1. The services PMI surged to 54.8, showing the largest output growth in a year, while the manufacturing PMI rose to 50.9.
In addition, the latest Fed meeting minutes showed that Fed policymakers expressed concern about the lack of progress in combating inflation, as high levels of inflation are more persistent than expected in early 2024.
Investors are expected to keep a close eye on Friday’s U.S. durable goods orders, which assess the value of three or more years of durable goods orders received by manufacturers. In addition, the Michigan Consumer Sentiment Index will also help investors understand U.S. consumers’ attitudes toward their financial and income conditions.
In New Zealand, the ANZ-Roy Morgan consumer confidence index rose to 84.9 in May from 82.1 in April, but is still relatively low and close to levels seen during the new crown pandemic. The rebound in this data may provide some support for the New Zealand dollar, while also limiting the downside for NZD/USD.
Christian Hawkesby, deputy governor of the Reserve Bank of New Zealand, said on Friday: “An interest rate cut is not on the table.” In addition, Karen Silk, assistant governor of the New Zealand Reserve Bank of Australia, commented on the recent It expressed concern about inflation risks and noted that the bank had adjusted its model after underestimating the strength of domestic inflation.
