PCE Data in Focus as USD/JPY Price Remains Stable Amid Inflation Concerns

USD/JPY price is stable as investors await the latest data on personal consumption expenditures (PCE) due this Wednesday. The PCE index, a key inflation gauge for central bank policymakers, is expected to show ongoing price pressures despite consumers continuing to spend.

This data will be closely watched by the Federal Reserve, which has been weighing heavily on NZD/USD in recent times. The pair has tumbled from its highs hit in late August and is now trading just above 0.5639, a key support level that held in June.

Fed's Williams has stated that another interest rate hike may be needed by the end of 2026 to ensure high inflation does not become entrenched.