NZD/USD trades below 0.7000 after US inflation data
- NZD/USD is edging slightly lower in the early American session.
- Core PCE inflation edged higher in June but came in lower than market expectation.
- US Dollar Index clings to modest gains near 92.00.
The NZD/USD pair is pushing lower in the early American session and was last seen losing 0.2% on the day at 0.6994.
DXY tests 92.00 on Friday
The modest USD strength seems to be weighing on NZD/USD. The US Dollar Index is currently rising 0.12% on the day at 91.99.
The data published by the US Bureau of Economic Analysis showed on Friday that the Core Personal Consumption Expenditures (PCE) Price Index rose to 3.5% on a yearly basis in June from 3.4% in May. This print came in lower than the market expectation of 3.7%. Other data from the US revealed that Personal Income increased by 0.1% in the same period while Personal Spending expanded by 1%.
Meanwhile, St. Louis Fed President James Bullard said the labour market could be fully recovered by next summer and added this would meet the condition for the Fed to start raising rates.
Later in the session, the University of Michigan will release the July Consumer Sentiment Index data. Earlier in the day, the Roy Morgan Consumer Confidence Index in New Zealand declined to 113.1 in July from 114.1 in June but this print was largely ignored by market participants.
Technical levels to watch for