NZD Struggles Amid Cautious RBNZ Policy Outlook and Weaker USD
The New Zealand Dollar (NZD) continues to struggle due to cautious sentiment surrounding the Reserve Bank of New Zealand's (RBNZ) policy outlook. Despite a recent rate hike, the central bank's decision has not been enough to boost confidence in the NZD/USD pair.
Meanwhile, the US Dollar (USD) is weakening amid broader market uncertainty ahead of crucial US inflation data. Goldman Sachs noted that a benign Consumer Price Index reading could prevent the Federal Reserve from raising interest rates, even after robust August labor market figures cleared a major hurdle for a potential rate hike.
The upcoming US CPI print on Friday will be closely watched, with Deutsche Bank expecting a notable pickup in price pressures. The bank's economists forecast that headline CPI will rise by +0.38% month-on-month in August, while core CPI is expected to print at +0.21% month-on-month.