NZD/USD Steadies at Two-Month Low Amid Stronger US Dollar
The New Zealand Dollar (NZD) stabilized around 0.5800 on Friday after plummeting to a near two-month low earlier in the American session.
A stronger US Dollar, boosted by Federal Reserve rate-hike bets and rising Treasury yields, drove the decline of the NZD/USD pair.
The Reserve Bank of New Zealand's cautious stance is keeping the Kiwi on its back foot as it waits for key economic data releases, including the Business NZ PMI and US inflation figures.
A hot US Producer Price Index (PPI) final demand rose 5.4% in August, while New Zealand's Business NZ Manufacturing PMI for August is due later Friday.
The technical analysis suggests a bearish near-term tone as the NZD/USD pair holds below both the 20-period and 100-period Simple Moving Averages (SMAs).