Ella 
In early Asian trading on Thursday, NZD/USD remained on the defensive, encountering resistance at mid-range 0.5900. A stronger U.S. dollar and rising U.S. bond yields boosted NZD/USD. NZD/USD is currently trading around 0.5928, with an intraday increase of 0.09%.
The latest data on Thursday showed New Zealand’s ANZ business confidence index fell to 1.5 in September from a previous reading of 3.7. Meanwhile, the ANZ Activity Outlook Index fell to 10.9 in September from 11.2% in the previous month. The Reserve Bank of New Zealand is expected to remain on hold at next week’s policy meeting, but is expected to raise interest rates again in November.
In terms of the U.S. dollar, the U.S. Census Bureau reported on Wednesday that U.S. durable goods orders rose in August, with the monthly rate of durable goods orders rising 0.2% from the previous value of -5.6%, against expectations of -0.5%. Elsewhere, orders for durable goods excluding transportation rose 0.4% monthly, better than expectations for a 0.1% increase. Core capital goods orders increased 0.9% month-on-month, higher than expected -0.4%. Following upbeat US economic data, the US dollar gained momentum across the board, acting as a headwind for NZD/USD.
Risk aversion dominated markets as investors weighed the risks to growth that could come from a rise in long-term interest rates and an impending U.S. government shutdown. However, market participants will be closely watching Federal Reserve Chairman Jerome Powell’s speech this week. Officials speaking less hawkishly could limit the dollar’s upside against rival currencies.
Market participants will pay close attention to U.S. initial jobless claims for last week, the third revision of second-quarter gross domestic product and existing home sales data released on Thursday. On Friday, the core PCE price index, the Fed’s preferred measure of consumer inflation, will be in focus. The core PCE price index is expected to slow to an annual rate of 3.9% from 4.2%. Traders will look for NZD/USD trading opportunities from this data.
