NZD/USD slips ahead of GDP, Fed meeting – heochaua

<p><a href="https://api.addthis.com/oexchange/0.8/forward/facebook/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Ffundamental%2Fnzd-usd-slips-ahead-of-gdp-fed-meeting%2Fkfisher&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/facebook.png" border="0" alt="Facebook" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/twitter/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Ffundamental%2Fnzd-usd-slips-ahead-of-gdp-fed-meeting%2Fkfisher&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/twitter.png" border="0" alt="Twitter" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/email/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Ffundamental%2Fnzd-usd-slips-ahead-of-gdp-fed-meeting%2Fkfisher&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/email.png" border="0" alt="Email" /></a></p><ul>
<li>New Zealand GDP expected to decelerate</li>
<li>US inflation ticks lower</li>
<li>Fed widely expected to pause</li>
</ul>
<p>The New Zealand dollar is sharply lower in Wednesday trade. In the European session, NZD/USD is trading at 0.6095, down 0.61%.</p>
<p><strong>US inflation ticks lower, all eyes on Fed</strong></p>
<p>US inflation ticked lower in October as expected and the release was a non-event for the markets, which slightly reduced their rate-cut pricing. Headline CPI climbed 3.1% year-on-year in November, down from 3.2% in October and in line with the market estimate of 3.1%. Core CPI, which is considered a more reliable gauge of inflation trends, climbed 4.0% year-on year in November, unchanged from October. This matched the market estimate of 4.0%.</p>
<p>On a monthly basis, both CPI and Core CPI ticked higher. CPI came in at 0.1%, up from 0.0% in October and the core rate also rose from 0.2% to 0.3%. Both readings matched the market estimates. A decline in gasoline prices helped pull down inflation. However, a wide range of goods and services experienced price increases, suggesting that underlying inflation remains sticky.</p>
<p>Today’s FOMC meeting could provide clues as to what the Fed has in mind in the New Year. The markets have priced in a pause today at close to 100%, so the focus will be the rate statement and Jerome Powell’s post-meeting press conference. If Powell is hawkish and pushes back against rate cuts, it could force the market to again reduce rate cut expectations.</p>
<p><strong>New Zealand GDP expected to decelerate to 0.2%</strong></p>
<p>New Zealand releases GDP for the third quarter on Thursday, with expectations for a weak gain of 0.2% q/q, compared to a sharp gain in Q2 of 0.9%. On an annualized basis, the market consensus stands at 0.5%, following a 1.8% gain in the second quarter. An unexpected reading could have a strong impact on the direction of the New Zealand dollar.</p>
<p>.</p>
<p><strong>NZD/USD Technical</strong></p>
<ul>
<li>NZD/USD is putting pressure on support at 0.6076. Below, there is support at 0.6031</li>
<li>There is resistance at 0.6150 and 0.6195</li>
</ul>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2.png"><img loading="lazy" class="alignnone wp-image-809073" src="https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2-300×143.png" alt="" width="400" height="191" srcset="https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2-300×143.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2-1024×488.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2-768×366.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2-1536×732.png 1536w, https://www.marketpulse.com/wp-content/uploads/2023/12/GBPUSD_2023-12-13_13-44-25-2.png 1835w" sizes="(max-width: 400px) 100vw, 400px" /></a></p>